SPR Auto Technologies (SHRIPISTON) Q4 13/14 earnings summary

Executive summary

• FY14 net revenue rose 11% YoY to Rs. 11,697.12 million; PAT increased 42% to Rs. 696.53 million despite weak vehicle markets and higher power costs.

• Market-share gains with selected OEMs, domestic aftermarket growth and exports supported sales; Pathredi work stoppages disrupted supplies and are expected to weigh on FY15 sales and profits.

Financial highlights

• Net revenue from operations was Rs. 11,697.12 million vs Rs. 10,524.66 million; gross profit after interest but before depreciation and tax rose 28% to Rs. 2,012 million.

• PBT increased to Rs. 1,005.89 million from Rs. 698.85 million; PAT was Rs. 696.53 million vs Rs. 489.50 million.

• Total expenses rose to Rs. 10,813.32 million from Rs. 9,916.37 million; power and fuel expense increased to Rs. 840.96 million from Rs. 710.46 million.

• Operating cash flow was Rs. 1,796.59 million; cash and cash equivalents ended FY14 at Rs. 450.80 million vs Rs. 309.51 million.

Outlook and guidance

• FY15 automotive-sector growth was expected at ~5%, with a flat first half and ~10% growth in the second half; growth-oriented policies and a stable government were expected to support recovery.

• Growth above the industry was targeted, supported by new business from key customers and exports; export growth of ~18% was planned for FY15.

• Export prospects for FY15 were described as better, while the Pathredi strike was expected to adversely affect current-year sales and profits as operations ramped up.