Synopsis: Affordable Robotic & Automation has emerged as a profit machine, driven by its robust order book and remarkable growth in revenue and profitability. The company's ability to maintain momentum on profitability and its impressive client list make it an attractive investment opportunity.
Affordable Robotic & Automation (ARA) has emerged as a profit machine, with its stock surging 11% on May 31, 2024. The company's remarkable performance is driven by its robust order book of around Rs820 million and its ability to maintain momentum on profitability.
ARA's Journey to Success
ARA is the first robotics firm to be listed on the Bombay Stock Exchange (BSE). The company offers turnkey automation solutions for industrial automation, including welding lines using robotics, material handling automation services, and automated car parking systems. Its services span three verticals: one-stop parking solutions, warehouse automation, and proprietary software development.
Renowned Clients and Milestones
ARA has an impressive client list, including Mahindra & Mahindra, Maruti Suzuki, Honda, TVS, Piaggio, Volvo, and Eicher for automation. For car-parking solutions, its clients include Lodha, Shreepati Group, Parinee, Marvel, VTP Realty, Dhuleva Group, and Swastik Group. Over the past decade, the company has sold more than 5,000 robots and installed more than 10,000 car parking systems, serving customers in India, China, and other parts of Asia.
FY24 Results: A Staggering Growth
ARA's FY24 results are nothing short of extraordinary. The company saw a 43% year-on-year increase in revenue, primarily driven by a 59% year-on-year growth in automation-segment revenue. This substantial revenue jump, paired with a smaller rise in operating expenses, resulted in a staggering 95% year-on-year jump in operating profit. Profit before tax grew by 113%, and profit after tax by 197%.
Related Questions
1. What factors contributed to the surge in Affordable Robotic & Automation (ARA) stock on May 31, 2024?
ARA's stock surged 11% due to its robust order book of around Rs820 million and its ability to maintain momentum on profitability.
2. What are the key services offered by Affordable Robotic & Automation (ARA)?
ARA offers turnkey automation solutions for industrial automation, including welding lines using robotics, material handling automation services, and automated car parking systems.
3. Can you name some renowned clients of Affordable Robotic & Automation (ARA)?
Some of ARA's renowned clients include Mahindra & Mahindra, Maruti Suzuki, Honda, TVS, Piaggio, Volvo, Eicher, Lodha, Shreepati Group, Parinee, and more.
4. What were the key financial highlights of ARA's FY24 results?
ARA saw a 43% year-on-year increase in revenue in FY24, with a substantial rise in operating profit by 95% year-on-year. Profit before tax grew by 113%, and profit after tax by 197%.
5. What are the key segments covered by Affordable Robotic & Automation (ARA)'s services?
ARA's services span three verticals: one-stop parking solutions, warehouse automation, and proprietary software development.
