SPR Auto Technologies (SHRIPISTON) Q4 15/16 earnings summary

Executive summary

• FY16 net sales rose 12% to Rs. 13,929.60 million; PAT increased 62% to Rs. 927.29 million, with EPS at Rs. 41.44.

• Exports grew 10% to Rs. 2,382 million; production began for latest-generation pistons for a premium global vehicle manufacturer.

Financial highlights

• Total income was Rs. 14,099.64 million vs. Rs. 12,615.86 million in FY15; net revenue from operations was Rs. 13,929.60 million vs. Rs. 12,443.77 million.

• EBITDA was Rs. 2,519.26 million vs. Rs. 2,073.43 million; profit before tax was Rs. 1,327.98 million vs. Rs. 792.59 million.

• Net profit after tax was Rs. 927.29 million vs. Rs. 573.16 million; total expenses were Rs. 12,771.66 million vs. Rs. 11,823.27 million.

• Net cash from operating activities was Rs. 2,451.52 million vs. Rs. 1,294.74 million; cash and cash equivalents closed at Rs. 224.02 million.

Outlook and guidance

• FY17 growth target is above industry growth, supported by new business from key OEMs and greater domestic and export aftermarket focus.

• Export growth of more than 20% was planned for FY17; aftermarket exports faced difficulty in oil-dependent markets including Egypt, Nigeria, Iran and the Middle East.

• Indian automotive prospects were viewed as moderately positive; infrastructure investment and vehicle scrappage proposals could support commercial vehicle demand, while normal monsoon forecasts could aid tractors.

• BS-VI norms for passenger and commercial vehicles are planned from 2020, requiring technology investment; the Tech Centre and technology partnerships support development of compliant solutions.