Suprajit Engineering (532509) Q3 24/25 earnings summary

Executive summary

• Consolidated revenue (excluding SCS) for the nine months ended Dec 31, 2024, grew 8% year-over-year to INR 2,290 crores, with operational EBITDA up 28% to INR 295 crores.

• Standalone revenue rose 14% to INR 1,283 crores, and standalone operational EBITDA increased 13% to INR 226 crores for the same period.

• Q3 consolidated revenue (excluding SCS) was INR 782 crores, up 8% year-over-year, with operational EBITDA at INR 111 crores, up 28%.

• Reported unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

• Interim dividend of ₹1.25 per share declared for FY 2024-25, with record date set for February 18, 2025.

Financial highlights

• Standalone revenue from operations for Q3 FY25 was ₹4,563.74 million, up from ₹4,052.14 million in Q3 FY24.

• Standalone net profit for Q3 FY25 was ₹607.84 million, compared to ₹573.22 million in Q3 FY24.

• Consolidated revenue from operations for Q3 FY25 was ₹8,315.75 million, up from ₹7,241.76 million in Q3 FY24.

• Consolidated net profit for Q3 FY25 was ₹334.10 million, compared to ₹402.46 million in Q3 FY24.

• Total debt stood at INR 627 crores as of Dec 31, 2024, with a cash surplus of INR 207 crores invested in mutual funds and bonds.

Outlook and guidance

• Management expects operational improvements and cost reductions to sustain or improve margins, especially in the Controls Division.

• SCS turnaround is expected to take a few more quarters, with cost reduction and operational excellence initiatives underway.

• Completion of the second stage of the Stahlschmidt Cable Systems (SCS) acquisition expected in Q4 FY25.

• New joint venture with Chuo Spring Company Limited, Japan, to design and manufacture transmission cables in India.

• Morocco plant is strategically positioned for both European and U.S. supply, offering flexibility amid geopolitical uncertainties.