Sansera Engineering (SANSERA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached Rs. 7,439 million, up 13% year-over-year, with EBITDA at Rs. 1,275 million and stable margins at 17%.

• Domestic and international businesses both grew at double-digit rates, with domestic revenues at an all-time high and international revenue up 17% YoY.

• Emerging sectors (non-auto, tech-agnostic, XEV) expanded by 34% YoY, now contributing 28% of total revenue.

• Order book for new business reached Rs. 16.9 billion as of June 2024, supporting long-term expansion.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with statutory auditors issuing unmodified review reports.

Financial highlights

• Gross margin improved from 39.9% in Q1 FY24 to 41.8% in Q1 FY25, driven by favorable product mix.

• PAT for the quarter was Rs. 501 million, with depreciation and amortization at Rs. 400 million due to ongoing CapEx.

• Standalone revenue from operations was Rs. 6,814.88 million, up from Rs. 5,881.54 million YoY; consolidated revenue reached Rs. 7,439.33 million, up from Rs. 6,600.66 million YoY.

• Basic EPS for the quarter was Rs. 9.37 standalone and Rs. 9.24 consolidated.

• Net debt as of June 2024: Rs. 7,718 million.

Outlook and guidance

• Management remains cautiously optimistic for FY25, maintaining a growth outlook despite global uncertainties.

• CapEx of Rs. 4,500 million planned for FY25, focused on brownfield expansion and new press commissioning.

• Non-auto, tech-agnostic, and XEV businesses expected to grow at 40-50% CAGR over the next 2-3 years.

• Aerospace revenue targeted to grow 30-35% in FY25, with exports from India expected to maintain strong momentum.

• Board recommended a final dividend of Rs. 3 per equity share for FY24, subject to shareholder approval.