Sterling Tools Ltd., a leading manufacturer of automotive and industrial tools, has reported a 40% increase in its second-quarter net profit to ₹34.2 crore, driven by strong revenue growth and improved operating efficiency.
The company’s revenue from operations rose 25% to ₹294.8 crore in the quarter ended September 2024, compared to ₹236.2 crore in the corresponding period last year. Sterling Tools’ earnings before interest, tax, depreciation, and amortization (EBITDA) increased 32% to ₹54.8 crore.
Managing Director, P.M. Jaiswal, attributed the strong performance to “increased demand from automotive and industrial segments, coupled with our focus on operational efficiency and cost reduction.” He added that the company is well-positioned to benefit from the growing demand for automotive and industrial tools in India.
Sterling Tools’ automotive segment revenue grew 28% to ₹194.8 crore, while its industrial segment revenue increased 20% to ₹100 crore. The company’s export revenue rose 30% to ₹50.8 crore. Analysts expect Sterling Tools to continue its growth momentum, driven by the increasing demand for automotive and industrial tools in India. The company’s focus on innovation, quality, and customer satisfaction is expected to support its market share and revenue growth. Sterling Tools’ shares closed at ₹344.90 on the BSE, with a 52-week high of ₹408.00 and a 52-week low of ₹240.00.
The company’s strong financial performance and growth prospects make it an attractive investment opportunity. As the Indian automotive and industrial sectors continue to grow, Sterling Tools is poised to benefit from the increasing demand for its products.
Sterling Tools Limited (STL) is a leading manufacturer of high-tensile fasteners in India, catering to a wide array of industries, including automotive, agriculture, construction, and industrial machinery. Established in 1979, the company has built a reputation for quality, innovation, and precision in engineering. With state-of-the-art manufacturing facilities and a strong focus on research and development, Sterling Tools provides customized solutions to meet the diverse requirements of its clients, including major original equipment manufacturers (OEMs). Known for its commitment to sustainability and excellence, STL continues to expand its product portfolio and global footprint, strengthening its position as a trusted partner in the fastener industry.
