💰 Financial Performance

Revenue Growth by Segment

The Company registered a total turnover of INR 43,177.73 lakhs in FY 2024-2025, representing a modest growth rate of 2.18% YoY. Its material subsidiary, JMA Marketing Limited, contributed a turnover of INR 12,394.06 Lakhs, driven by new supply rights for key products in the Western region.

Geographic Revenue Split

While specific regional percentages are not provided, the company is aggressively targeting Tier-II and Tier-III cities to cover previously untapped areas. The subsidiary has a significant presence in the Western region of India.

Profitability Margins

Profit before tax (PBT) stood at INR 2,741.86 lakhs, a decrease of 0.80% compared to INR 2,763.98 lakhs in the previous year. Net profit for the material subsidiary was INR 673.45 Lakhs. The drop in profitability is attributed to increased competition and higher working capital requirements.

EBITDA Margin

Not explicitly disclosed, but the Return on Equity (ROE) dropped from 11.11% to 9.93% due to low growth in profit and pressure on gross margins from enhanced competition in the aftermarket.

Capital Expenditure

Historical and planned CAPEX is focused on opening new outlets and sales units in potential tier-II & tier-III towns to expand the distribution footprint, though specific INR Cr values for future spend are not disclosed.

Credit Rating & Borrowing

JMA is a debt-free company. However, the management noted that high borrowing interest rates in the market (impacting the distribution chain) led to lower inventory levels at dealer premises, which the company expects to reverse as rates decrease.

⚙️ Operational Drivers

Raw Materials

Auto spare parts and components (distribution model). Raw material pricing for manufacturers was stable in FY 2024-2025, resulting in minimal revenue increases from price hikes.

Capacity Expansion

The company operates as a distributor rather than a manufacturer; expansion is measured by the addition of new product lines and the opening of new sales outlets in uncovered Tier-II and Tier-III locations.

Raw Material Costs

Raw material prices were stable in FY 2024-2025; however, the company noted that gross profit was under pressure due to aggressive competition from Original Equipment Manufacturers (OEMs) in the secondary market.

Manufacturing Efficiency

As a distribution-led business, efficiency is driven by the ERP system and the widening replacement window for aftermarket spares due to improved technology and part quality.

Logistics & Distribution

Distribution is handled through a network of outlets; transport is cited as an integral cost, with the company advocating for a reduction in the 28% GST rate to provide relief to the industry.

📈 Strategic Growth

Expected Growth Rate

2.18%

Growth Strategy

Growth will be achieved by adding more products and lines to the existing product mix and focusing on geographic expansion into Tier-II and Tier-III cities. The company is also leveraging its material subsidiary, JMA Marketing Limited, which recently bagged supply rights for key products in the Western region.

Products & Services

Distribution of auto spare parts and auto components in the secondary/aftermarket.

Brand Portfolio

Jullundur Motor Agency (Delhi) Limited, JMA Marketing Limited.

New Products/Services

The company is in the process of adding more products/lines to its product mix to cater to uncovered areas, though specific revenue contribution percentages for new launches are not disclosed.

Market Expansion

Targeting expansion in Tier-II and Tier-III cities and towns across India to reach uncovered territories.

Strategic Alliances

The company operates through its material subsidiary, JMA Marketing Limited (100% or majority ownership implied by 'material subsidiary' status).

🌍 External Factors

Industry Trends

The secondary market for auto components is seeing increased competition from OEMs and new entrants. While better infrastructure reduces part wear, the overall market is evolving with technology improvements that extend part life.

Competitive Landscape

Facing aggressive competition from OEMs and new entrants expanding their product lines in the aftermarket segment.

Competitive Moat

The company possesses a 98-year legacy (76 years as a limited company) and a deep-rooted distribution network. Its moat is built on long-term relationships with suppliers and customers, though this is being challenged by OEM direct-to-market strategies.

Macro Economic Sensitivity

Highly sensitive to interest rates; high borrowing costs for dealers lead to lower inventory holding, while expected rate cuts are projected to boost inventory levels and company sales.

Consumer Behavior

Dealers are exhibiting cautious behavior by holding lower inventory levels due to high interest rates, though demand remains linked to the overall transport activity in the country.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013 and SEBI (LODR) Regulations. The company is not required to have a Risk Management Committee as it does not fall within the top 1000 listed companies by market capitalization.

Environmental Compliance

The company spent INR 57.93 lakhs on CSR initiatives in FY 2024-2025, exceeding the statutory requirement of INR 57.90 lakhs (2% of average net profit of INR 2,895.12 lakhs).

Taxation Policy Impact

Most automobile vehicles and spare parts attract the highest GST rate of 28%, which the company identifies as a major hurdle for industry growth.

Legal Contingencies

The company reported that there were no investor complaints unresolved or pending as of March 31, 2025. Specific values for other pending court cases were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the aggressive posture of OEMs in the secondary market which could lead to a loss of market share for independent distributors. Gross profit margins are expected to remain under pressure.

Geographic Concentration Risk

The company is currently concentrated in existing regions but is actively diversifying into Tier-II and Tier-III towns to mitigate regional stagnation.

Third Party Dependencies

Dependency on auto component manufacturers for supply; the subsidiary recently secured supply rights for a key product in the Western region, indicating high dependency on specific product mandates.

Technology Obsolescence Risk

Continuous improvement in the quality and technology of parts is widening the replacement window, which acts as a risk to the frequency of replacement part sales.

Credit & Counterparty Risk

The company monitors credit through its ERP system; working capital has increased across the distribution chain, indicating potential liquidity pressure on counterparties.