Auto Parts & Equipment company Sterling Tools announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Total income grew by 6.2% YoY to Rs 651.6 crore in FY25 as against Rs 613.7 crore in FY24 EBITDA increased by 4.8% YoY to Rs 94.8 crore as compared to Rs 90.5 crore in FY24 EBITDA margin stood at 14.5% in FY25 Profit after tax witnessed a growth of 10.5% YoY to Rs 42.9 crore in FY25 as compared to Rs 38.8 crore in FY24 Profit after tax margin stood at 6.6% in FY25 as against 6.3% in FY24 FY25 Financial Highlights: Total income grew by 10.6% YoY to Rs 1,038.0 crore in FY25 as against Rs 938.5 crore in FY24 Adjusted EBITDA (excluding ESOP expenses) increased by 13.8% YoY to Rs 132.4 crore in FY25 compared to Rs 116.3 crore in FY24 Adjusted EBITDA margin stood at 12.8% in FY25 as compared to 12.4% in FY24 Profit after tax witnessed a growth of 5.3% YoY to Rs 58.3 crore in FY25 compared to Rs 55.4 crore in FY24 Profit after tax margin stood at 5.6% in FY25 Commenting on the Q4 & FY25 performance, Atul Aggarwal, Managing Director of Sterling Tools stated: “In FY25, our consolidated total income increased by 10.6% YoY to Rs 1,038.0 crore, driven by strong growth in our subsidiary SGEM and a stable performance in the standalone business, which recorded 6.2% YoY revenue growth and 10.5% YoY PAT growth. Adjusted EBITDA on a consolidated basis rose by 13.8% YoY to Rs 132.4 crore, with margins expanding to 12.8%. We are delighted to achieve this Rs 1,000 crore landmark and look forward to meeting greater milestones in the years to come. Despite the strong full-year performance, our Q4 performance was impacted by a decline in our subsidiary SGEM’s revenue, following Ola’s transition to in-house production for its Gen3 models. The Company has redoubled its ongoing efforts on product and customer diversification SGEM announced the signing of a Technology Licensing Agreement for the development and manufacturing of rare earth/permanent magnet free Motors in India. Through the introduction of a mature and commercially viable rare earth magnet-free technology, SGEM will secure the first mover advantage in this crucial emerging segment. The Licensing Agreement will enable SGEM to offer its customers an alternative to the China dependent permanent magnet supply chain. The business plan also calls for the joint development of integrated motor and controller solutions. Agreements on the introduction of other Power Electronics products are in the pipeline and, at least one, will be announced in the near future. The Company continues to also work on 2W, 3W and Commercial Vehicle customers to expand sales of its Motor Control Units. Through our subsidiary STML, we plan to begin production of HVDC Contactors and Relays by the end of Q2 FY26, in partnership with Kunshan GLVAC Yuantong New Energy Technology Co. Ltd. We are also in advanced discussions to establish a joint venture with MotiveLink Co. Ltd. (Erstwhile Yongin Electronics) to manufacture magnetic components in India. These initiatives are expected to drive future growth. Looking ahead, the standalone business is expected to continue its stable growth trajectory, maintaining high single-digit growth. Collectively, these strategic moves will enhance our EV product portfolio, promote import substitution, and align with the Government of India’s Atmanirbhar Bharat vision. We remain committed to delivering long-term value through a combination of organic growth and strategic partnerships.” Result PDF
Conference Call with Sterling Tools Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.