SPR Auto Technologies (SHRIPISTON) Q4 19/20 earnings summary

Executive summary

• FY20 operating revenue fell to Rs. 16,068 million from Rs. 19,549 million; EBITDA declined to Rs. 2,018 million from Rs. 3,175 million, amid a prolonged auto slowdown and COVID-19 disruption in March.

• BS-VI product launches, new OEM awards, cost-reduction initiatives and export/aftermarket expansion support the longer-term growth plan, while near-term demand remains uncertain.

Financial highlights

• Revenue from operations was Rs. 16,067.73 million vs. Rs. 19,549.03 million; total income was Rs. 16,266.12 million vs. Rs. 19,785.35 million.

• EBITDA was Rs. 2,018 million vs. Rs. 3,175 million; gross profit before OCI was Rs. 1,895 million vs. Rs. 3,036 million.

• PBT was Rs. 864.15 million vs. Rs. 2,092.38 million; PAT before OCI was Rs. 730.35 million vs. Rs. 1,384.50 million.

• Tax expense included a one-time net credit of Rs. 98.80 million from deferred-tax remeasurement; excluding this credit, reported earnings received a material one-off tax benefit.

• Exports declined to Rs. 2,650 million from Rs. 3,257 million; EPS was Rs. 32.64 vs. Rs. 61.88.

Outlook and guidance

• FY21 auto-sector growth was expected to be negative to nil; demand recovery depends on the economy, COVID-19 conditions and government fiscal support.

• Targeting growth above industry rates in FY21, supported by BS-VI awards from key OEMs and greater domestic and export aftermarket focus.

• Exports expected to increase as India gains recognition as a reliable precision-component source; aftermarket sales are expected to contribute more to sales and profits.

• Medium- to long-term sector outlook remains positive; management expected near-term electric-mobility impact to be limited by infrastructure, cost and implementation constraints.