SPR Auto Technologies (SHRIPISTON) Q4 16/17 earnings summary

Executive summary

• FY17 revenue from operations increased 5% to Rs 16,287m; PAT before OCI rose 29% to Rs 1,181m, supported by improved operating profitability.

• Growth slowed in H2 amid demonetization and volatile commercial-vehicle demand; commodity-price and power-cost increases also pressured profits.

• Strategic priorities included export growth, supply-chain and working-capital improvements, productivity, cost reduction, and readiness for stricter emission norms.

Financial highlights

• Standalone total income was Rs 16,547.45m versus Rs 15,629.42m in FY16; revenue from operations was Rs 16,286.99m versus Rs 15,455.65m.

• EBITDA increased to Rs 2,812.35m from Rs 2,499.03m; gross profit before OCI, after interest but before depreciation and tax, rose 16.5% to Rs 2,608.23m.

• PBT before OCI was Rs 1,708.80m versus Rs 1,311.21m; PAT before OCI was Rs 1,180.98m versus Rs 916.32m.

• EPS increased to Rs 52.78 from Rs 40.95; total comprehensive income was Rs 1,125.05m versus Rs 912.87m.

• Net cash from operations was Rs 1,893.83m versus Rs 2,552.14m; cash and cash equivalents closed at Rs 1,219.26m.

Outlook and guidance

• FY18 export growth was expected to exceed 15%; the broader outlook also called for double-digit export growth despite economic weakness in several overseas markets.

• Growth above the industry was targeted for FY18, supported by new business from key OEMs and increased domestic and export aftermarket focus.

• The short- and medium-term outlook for India’s automotive sector was assessed as moderately positive, with infrastructure spending and GST implementation seen as potential supports.

• Product and process development focused on next-generation pistons, pins, rings and engine valves to meet stricter emission requirements and remain cost competitive.