SJS Enterprises (SJS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 began with strong demand across vehicle segments, supported by economic activity and government initiatives, resulting in 60.9% YOY revenue growth to INR 1,886.2 million.

• Outperformed auto industry production growth by more than 2.5x, marking the 19th consecutive quarter of industry outperformance.

• Appointment of Mahendra Singh as Group CEO/COO to strengthen operational management and drive excellence.

• Strategic acquisition of Walter Pack and addition of Dixon Technologies as a client are expected to fuel future growth.

• Grant of 1,500 ESOPs to eligible employees under the 2021 plan.

Financial highlights

• Consolidated revenue grew 60.9% YOY to INR 1,886.2 million, driven by Walter Pack acquisition and strong passenger vehicle and consumer segments.

• EBITDA reached INR 505 million, up 60.8% YOY, with a margin of 26.6%, improving 33 bps sequentially and 51 bps YOY.

• PAT stood at INR 282.4 million, up 56.6% YOY, with a PAT margin of 15%; adjusted PAT (excluding WPI amortization) was INR 302.3 million with a 16% margin.

• Free cash flow for the quarter was INR 397.2 million; cash and cash equivalents at INR 766.6 million; net cash position at INR 233.7 million as of June 30, 2024.

• Basic EPS (consolidated) for Q1 FY25 was ₹8.97, up from ₹5.90 in Q1 FY24.

Outlook and guidance

• Confident of continuing to outperform industry growth by 1.5x, leveraging diversified segments, global footprint, and new product launches.

• Over 85% of FY25 forecasted revenue already secured in the order book.

• Guidance to maintain EBITDA margin around 25% despite short-term fluctuations due to new product development.

• Export revenue expected to grow to 13-15% of consolidated revenue over the next three years.

• Cover glass business to start contributing meaningfully from FY26.