SJS Enterprises (SJS) Q4 21/22 earnings summary

Executive summary

• FY 2021-22 consolidated revenue rose 15.5% to ₹3,698.6 million versus FY 2020-21 pro forma including Exotech; EBITDA was ₹985.3 million and PAT ₹550.1 million.

• Free cash flow was ₹500.3 million after the ₹640 million Exotech acquisition; consolidated ROCE was 27.1% and ROE 15.3%.

• New-age products contributed 16% of FY22 revenue, up from less than 3% in FY19; exports doubled over three years to ₹468.1 million.

Financial highlights

• Consolidated revenue from operations was ₹3,698.56 million; EBITDA ₹985.33 million at a 26.3% margin; PAT ₹550.18 million at a 14.7% margin.

• Consolidated basic and diluted EPS were ₹18.08 and ₹17.90, respectively; net worth was ₹3,604.71 million at March 31, 2022.

• Standalone revenue from operations grew to ₹2,678.85 million from ₹2,516.16 million; PAT rose to ₹518.61 million from ₹477.65 million.

• Standalone EBITDA margin was 31.5% and PAT margin 19.1% in FY22.

Outlook and guidance

• Revenue CAGR guidance is ~25% for FY23-25, supported by expected demand recovery, premiumisation, new customer wins and exports; underlying auto and consumer durable markets are expected to grow 10-12%.

• Chrome-plating capacity is planned to rise from current annual revenue capacity of ~₹1,300 million to ~₹3,000 million at full capacity; planned capex is ~₹1,000 million over 18-24 months, targeting 20% ROCE.

• Growth priorities include IME and other new technologies, exports, customer cross-selling, mega accounts and selective value-accretive acquisitions.