On Thursday, August 8, auto parts manufacturer Sansera Engineering Ltd announced a 10.8% year-over-year rise in net profit for the first quarter ending June 30, 2024, reaching ₹50.1 crore. This marks an increase from the ₹45 crore net profit recorded in the same quarter the previous year, as per the company’s filing with regulators.
The company’s revenue from operations also witnessed an impressive growth of 12.7%, climbing to ₹743.9 crore compared to ₹660 crore during the same period last fiscal year. At the operational level, Sansera Engineering’s EBITDA surged by 12%, amounting to ₹127.5 crore in Q1 of this fiscal year, up from ₹113.8 crore in the corresponding period of the previous year.
The EBITDA margin slightly adjusted to 17.1% in the recent quarter, compared to 17.2% in the prior year’s corresponding quarter. EBITDA, which stands for earnings before interest, tax, depreciation, and amortization, is a key financial indicator.
The company reported a 12% year-over-year increase in domestic revenues, complemented by a robust 17% growth in international markets. Sansera Engineering’s gross margins saw an improvement of approximately 2 percentage points during this quarter.
B R Preetham, Executive Director and CEO of Sansera Engineering, commented on the results, stating, “We started the year on a strong note with 13% growth in revenue and 12% growth in EBITDA. Several factors have contributed to this success, including strong performance in both domestic and international markets. Notably, this quarter represents our highest-ever quarterly performance in India, mainly driven by substantial growth in the two-wheeler segment.”
However, EBITDA margins remained steady due to rising employee costs and increased logistics expenses. The contribution of the company’s top five customers decreased marginally from 47.7% in Q1 FY24 to 46.1% in Q1 FY25.
As of June 2024, Sansera Engineering’s net debt amounted to ₹771.8 crore. The financial results were announced after the market closed. Sansera Engineering’s shares closed at ₹1,385.20 on the BSE, down by ₹38.05 or 2.67%.
