Sterling Tools Ltd, one of the prominent name in the auto component manufacturing sector, has unveiled its impressive financial performance for the fiscal year 2024, marked by a stellar 15.7% year-on-year growth in consolidated profit. Bolstered by significant advancements in its electric vehicle component business, the Faridabad-based company has reported remarkable growth figures, with its profit doubling during the fourth quarter of the fiscal year.
The company’s consolidated profit for FY24 surged to Rs 55.4 crore, a substantial increase from Rs 47.9 crore recorded in FY23, demonstrating robust financial health and operational efficiency. Revenue from operations witnessed a commendable 21% year-on-year increase, reaching Rs 932 crore, underscoring Sterling Tools’ resilience and agility in navigating dynamic market conditions.
Driving this impressive performance is the company’s electric vehicle component business, which has witnessed a phenomenal uptick in demand. Sterling Tools’ subsidiary, Sterling Gtake E-Mobility Ltd (SGEM), has emerged as a key revenue contributor, accounting for 35% of the company’s consolidated revenue, up from 23% in the previous fiscal year.
SGEM recorded a remarkable 86% year-on-year surge in turnover, reaching Rs 323.8 crore, fueled by the escalating adoption of electric vehicles in both the two-wheeler and three-wheeler segments. Meanwhile, Sterling Tools’ standalone revenue witnessed a marginal growth rate of 1.8%, reaching Rs 608.1 crore.
Furthermore, the company reported a commendable 16% year-on-year increase in adjusted EBITDA, reaching Rs 116.3 crore, excluding ESOP expenses. Notably, in FY23, Sterling Tools benefitted from a one-time gain of Rs 3.4 crore from insurance claims following a fire incident at one of its manufacturing facilities.
In the fourth quarter of FY24, Sterling Tools continued its upward trajectory, with consolidated profit doubling to Rs 16.3 crore compared to the year-ago period. This remarkable performance was underpinned by a 27% year-on-year growth in revenue from operations, totaling Rs 269.2 crore, and a 44% surge in adjusted operating profit, reaching Rs 33.8 crore. The company’s commitment to enhancing shareholder value is evident through its declaration of a final dividend of Rs 2 per equity share for FY24, subject to shareholder approval.
Looking ahead, Sterling Tools remains focused on expanding its presence in the electric vehicle segment, as evidenced by its recent MoU with South Korea’s Yongin Electronics Co Ltd to establish an EV components facility in India. This strategic collaboration is anticipated to generate an annual business of approximately Rs 200 crore over the next five years. “With our continued focus on innovation and strategic partnerships, Sterling Tools is poised for sustained growth and leadership in the evolving automotive landscape,” remarked Atul Aggarwal, Managing Director of Sterling Tools, highlighting the company’s commitment to driving
