Setco Automotive Limited (BSE: 505075, NSE: SETCO), one of India’s largest manufacturers of Medium and Heavy Commercial Vehicle (MHCV) clutches, has posted impressive financial results for the first half of FY25, reflecting significant growth in revenue and EBITDA. The company has also strengthened its position as a leading supplier in the truck products market.
In Q2 FY25, Setco Automotive reported a significant increase in revenue, reaching ₹159.9 crore, up from ₹145.7 crore in Q2 FY24, driven by higher volumes in both Original Equipment Supplier (OES) and aftermarket segments. EBITDA for the quarter surged by 104% to ₹26.0 crore, compared to ₹12.7 crore in the same period last year, due to increased sales and cost-saving initiatives, with an EBITDA margin of 16.2%. For the first half of FY25, revenue grew by 11%, reaching ₹322.4 crore, up from ₹290.9 crore in H1 FY24, primarily due to higher sales and the introduction of Setco Allied products. EBITDA for H1 FY25 saw a 72% increase, reaching ₹46.3 crore, up from ₹27.0 crore in H1 FY24, driven by higher aftermarket volumes and enhanced operational efficiencies, with an EBITDA margin of 14.4%. Business milestones during this period included receiving the NVB Excellence Award from Tata Motors, the SEEM Award for Energy Management at the UKD plant, and the successful launch of Setco Allied products such as Centre Bearings. The company also introduced the ‘Drive Rewards’ program via the Setco App, onboarding over 20,000 mechanics and retailers, and restructured Lava Cast’s debt, resulting in the withdrawal of its insolvency petition and Lava Cast turning EBITDA positive in H1 FY25.
Management Comments:
Harish Sheth, Chairman & MD of Setco Automotive, commented on the results, saying, “We are pleased with the substantial improvements in both revenue and EBITDA, driven by strong demand from our OES and IAM channels. Our focus on cost optimization has significantly improved our operational margins. We continue to deepen relationships with our customers, increasing our market share with them through consistent quality and service. These results highlight our commitment to sustainable growth and operational excellence, and we are optimistic about maintaining this momentum in the upcoming quarters.”
Setco Automotive, established in 1982, is a prominent manufacturer of MHCV clutches and truck products, with a diverse portfolio that includes brake linings, flywheels, lubricants, and universal joints. The company operates five manufacturing units and has R&D facilities in India and the UK, supporting product development and customer needs across global markets.
