Suprajit Engineering (532509) Q1 24/25 earnings summary

Executive summary

• Achieved 13% standalone and 8.1% consolidated revenue growth year-over-year in Q1 FY25, with EBITDA up 9.5% standalone and 16.1% consolidated.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved, showing continued profitability and revenue growth.

• Strategic focus on onshore, nearshore, and offshore operations is yielding results, with strong order wins from European and U.S. OEMs.

• Announced a share buyback of up to 1.5 million shares (1.08% of equity) at INR 750 per share, totaling up to INR 113 crores/₹1,125 million, to be completed by September 30, 2024.

• Acquisition of Stahlschmidt Cable Systems (SCS) in Germany completed its first stage in July 2024, with the second stage expected in Q3 FY25.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹3,768.94 million, up from ₹3,332.26 million in Q1 FY24.

• Standalone net profit for Q1 FY25 was ₹510.17 million, nearly flat compared to ₹509.14 million in Q1 FY24.

• Consolidated revenue from operations for Q1 FY25 was ₹7,348.57 million, up from ₹6,796.83 million in Q1 FY24.

• Consolidated net profit for Q1 FY25 was ₹381.37 million, up from ₹331.15 million in Q1 FY24.

• Basic EPS for Q1 FY25: Standalone ₹3.68; Consolidated ₹2.75.

Outlook and guidance

• Targeting double-digit growth in Controls Division for FY25, with strong order wins despite flat industry conditions.

• Consolidated EBITDA margin guidance remains at 12%, with aspirations to reach 12–14% over time.

• Second stage of SCS acquisition expected to complete in Q3 FY25, potentially expanding European operations.

• Group aims for 10% overall business growth, supported by robust automotive and electronics segments.

• Voluntary winding up of Trifa Lamps Germany GmbH, subject to approvals.