SPR Auto Technologies (SHRIPISTON) Q4 18/19 earnings summary

Executive summary

• FY19 revenue from operations rose to Rs 19,549 million from Rs 17,294 million excluding excise/taxes; SAPL amalgamation results are included from the appointed date, making periods not strictly comparable.

• Gross profit before OCI, after interest and before depreciation and tax, edged up to Rs 3,036 million from Rs 3,012 million despite commodity inflation, OEM price pressure and difficult H2 conditions.

• BS-VI model wins, export expansion, automation and diversification were positioned to support longer-term growth; near-term auto-sector growth outlook remained muted.

Financial highlights

• Revenue from operations: Rs 19,549 million in FY19 vs Rs 17,294 million in FY18 excluding excise/taxes; total income was Rs 19,785 million vs Rs 17,544 million.

• EBITDA was Rs 3,175 million vs Rs 3,176 million; PBT before OCI was Rs 2,092 million vs Rs 2,108 million.

• PAT before OCI was Rs 1,384 million vs Rs 1,389 million; EPS was Rs 61.88 vs Rs 62.07.

• Exports increased to Rs 3,257 million from Rs 2,994 million; gross profit before OCI reached Rs 3,036 million vs Rs 3,012 million.

Outlook and guidance

• FY20 export growth targeted at over 10%; exports were expected to benefit from global OEM relationships and aftermarket demand in the Middle East and Africa.

• FY20 domestic auto-sector outlook was nil to moderate growth, with elections and the BS-IV to BS-VI transition expected to affect demand and production; longer-term prospects were viewed positively.

• FY20 growth target was above industry growth, supported by BS-VI business secured from key OEMs, increased aftermarket focus and anticipated export growth.

• Land purchase for a third plant was approved; a Surface Treatment Centre of Excellence and product diversification projects were under consideration or development.