Craftsman Automation (CRAFTSMAN) Q4 18/19 earnings summary

Executive summary

• FY19 operating revenue reached a record ₹1,810 crore standalone and ₹1,818 crore consolidated, despite a second-half automotive slowdown.

• Consolidated PAT rose to ₹99.52 crore from ₹33.15 crore; diversified segment growth, export gains and railway products supported performance.

• Priorities include widening non-automotive exposure, expanding aluminium and material handling, and ramping storage solutions.

Financial highlights

• Standalone operating revenue grew 20% to ₹1,809.63 crore; EBITDA rose 47% to ₹427.15 crore from ₹290.18 crore.

• Standalone PBT increased 206% to ₹137.96 crore and PAT grew 193% to ₹94.18 crore; consolidated PAT was ₹99.52 crore, up from ₹33.15 crore.

• Consolidated revenue rose 20% to ₹1,818 crore from ₹1,511.53 crore; exports increased to ₹170 crore from ₹134 crore and machining income grew 18% to ₹534 crore.

• FY19 capital expenditure was ₹420.89 crore, mainly for aluminium die-casting and machining capacity, the Pune storage plant, BS VI upgrades and machining infrastructure.

Outlook and guidance

• FY20 automotive performance was expected to face continuing headwinds; management anticipated possible market recovery, supported by stable government, reforms and infrastructure focus.

• Upgraded plants and broader products were positioned to benefit from growth in automotive, industrial and engineering markets; goals include healthy EBITDA and ROCE.

• Pune storage facility completed trial production in FY19 and commenced production in April 2019; plans include further V-Store sales and automated storage and retrieval systems.