Craftsman Automation (CRAFTSMAN) Q4 22/23 earnings summary

Executive summary

• FY23 standalone revenue reached ₹2,980.24 crore, up 35% YoY; EBITDA was ₹671.33 crore and PAT ₹237.76 crore, up 25% and 48%, respectively.

• Consolidated revenue rose 44% to ₹3,182.60 crore, EBITDA increased 29% to ₹696.63 crore and PAT grew 54% to ₹250.96 crore; growth includes DR Axion from 1 Feb 2023.

• Diversification across automotive and non-automotive markets, customer sectors and products remained central to the growth strategy.

Financial highlights

• Standalone PBT increased to ₹339.45 crore from ₹248.40 crore; consolidated PBT was ₹354.79 crore versus ₹251.73 crore.

• Standalone operating revenue was ₹2,980.24 crore versus ₹2,206.43 crore; EBITDA was ₹671.33 crore versus ₹538.58 crore.

• Consolidated revenue was ₹3,182.60 crore versus ₹2,217.02 crore; EBITDA was ₹696.63 crore versus ₹541.94 crore.

• Standalone EPS was ₹112.53 versus ₹75.94; consolidated EPS was ₹117.56 versus ₹77.19.

• Operating cash flow was ₹566 crore, up 75% YoY; standalone capex was ₹309 crore.

Outlook and guidance

• Focus areas include debt reduction and interest savings, higher value addition per product, sustaining EBITDA margins, retaining customer wallet share and growing non-automotive business.

• FY24 production was expected to start for several new powertrain and aluminium orders, including PV, EV two-wheeler and farm applications.

• Powertrain outlook cited anticipated domestic CV and tractor growth, export sourcing opportunities and stronger PV volume visibility over the next two years.

• Industrial and storage growth opportunities include capex recovery, import substitution, renewables, cold storage, pharma, 3PL logistics and multi-commodity warehousing.