Ichikoh Industries posts strong first semester earnings, optimistic on growth

Ichikoh Industries, a Valeo company, announced its FY2025 First Semester financial performance, with sales decreasing to JPY 555 million, impacted by perimeter changes and production slowdowns. Despite this, operating income rose to JPY 27 million, a 52.7% increase, improving the operating margin to 4.8% due to inflation management, cost reduction, and productivity improvements. Net income attributable to the parent company's shareholder significantly increased by 87.9% to JPY 26 million.

Looking ahead, Ichikoh projects FY2025 full-year sales of JPY 1,210 million and operating income of JPY 54 million. The company expects second-semester operating income to equal the first semester, with growth driven by new model launches and tooling sales. Its mid-term plan, excluding the Indian business, targets recovering growth from 2028, aiming for JPY 1,415 million in total sales and an operating margin of approximately 7.0%.

The growth strategy includes JPY 12 billion in new customers and projects, JPY 8 billion in new technology, and JPY 9 billion from new territory, which includes a JV agreement with TACO in India to acquire VLS Chennai. The company’s equity ratio has exceeded 50%, reaching 58.5% by June 2025, while the D/E ratio increased to preserve cash, reflecting a solid financial base for its strategic initiatives.