SPR Auto Technologies (SHRIPISTON) Q4 17/18 earnings summary

Executive summary

• FY18 revenue from operations excluding excise duty/taxes rose 18% to Rs 17,294 million; PAT before OCI increased 18% to Rs 1,389 million.

• Higher production, sales, productivity and supply-chain streamlining supported profit growth; commodity inflation and OEM price-reduction demands weighed on margins.

Financial highlights

• Total income including excise duty was Rs 17,743 million vs Rs 16,236 million; revenue excluding excise was Rs 17,294 million vs Rs 14,626 million.

• EBITDA was Rs 3,176 million vs Rs 2,812 million; gross profit before OCI, after interest and before depreciation/tax, was Rs 3,012 million vs Rs 2,608 million.

• PBT before OCI rose to Rs 2,108 million from Rs 1,709 million; PAT before OCI was Rs 1,389 million vs Rs 1,181 million.

• EPS was Rs 62.07 vs Rs 52.78; operating cash flow was Rs 1,760 million vs Rs 1,828 million.

Outlook and guidance

• FY19 export growth expected above 10%; exports were Rs 2,994 million in FY18, compared with Rs 2,823 million in FY17.

• FY19 automotive component industry growth forecast at 10–12%; plans target growth above industry through new OEM business and greater domestic and export aftermarket focus.

• BS VI-compliant pistons, rings and engine valves are being developed ahead of the April 2020 implementation; ongoing technology and manufacturing investments are expected to support future benefits.