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.
Auto Parts & Equipment company Sterling Tools announced Q3FY25 results Total income grew by 12.3% YoY to Rs 262.7 crore in Q3FY25 as against Rs 234.0 crore in Q3FY24. Adjusted EBITDA for the quarter increased by 13.0% YoY to Rs 31.7 crore with Adjusted EBITDA margin at 12.1% in Q3FY25. Profit after tax stood at Rs 13.6 crore in Q3FY25. Atul Aggarwal, Managing Director of Sterling Tools, said: “During 9MFY25, our consolidated total income grew by 24.5% to Rs 832.3 crore on a YoY basis. The topline growth is mainly driven by SGEM which witnessed a revenue uptick of 56% to Rs 345.9 crore in 9MFY25 against corresponding period last year. The company registered an Adjusted EBITDA growth of 25.8% YoY to Rs 105.9 crore in 9MFY25. Our standalone business continues to exhibit steady performance with topline growth of 8.9% YoY in 9MFY25. The growth is attributable to a higher share of business with existing customers as well as addition of new customers. We have a deep commitment to the EV industry and to localization. We believe there are several unserved product opportunities in the EV space that we can address. With this thought process, we have announced multiple strategic collaborations in last few quarters to address dynamically evolving needs of the EV industry. We have signed a MOU with MOTIVELINK Co., Ltd (Erstwhile Yongin Electronics Co. Ltd) to manufacture entire portfolio of magnetic components required for various applications in India’s EV and electronics manufacturing industry. Furthermore, the company through its subsidiary Sterling Tech-Mobility Limited (STML) has partnered with China’s Kunshan GLVAC Yuantong New Energy Technology Co. Ltd to manufacture HVDC Contactors and Relays in India. Recently, STML has also partnered with Zhejiang Meishuo Electric Technology Co. Ltd., China to locally manufacture Latching Relays for the energy sector, industrial grids, and other applications in India. These associations will drive import substitution and will align with the Atmanirbhar Bharat vision of Government of India and help in building a self-reliant ecosystem for the Electric Vehicles, Hybrid Electric Vehicles, Industrial and White Goods Industries. Moving ahead, we shall continue with our focus towards exploring new growth frontiers and delivering sustainable performance through both organic as well as strategic initiatives.” Result PDF
Conference Call with Sterling Tools Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Auto Parts & Equipment company Sterling Tools announced H1FY25 & Q2FY25 results Standalone Financiial Highlights: Q2FY25: Total income grew by 8.4% YoY to Rs 168.4 crore in Q2FY25 as against Rs 155.4 crore in Q2FY24. EBITDA increased by 11.9% YoY to Rs 25.3 crore as compared to Rs 22.7 crore in Q2FY24. EBITDA margin increased to 15.0% in Q2FY25 as against 14.6% in Q2FY24. Profit after tax witnessed a growth of 19.4% YoY to Rs 11.9 crore in Q2FY25 as compared to Rs 10.0 crore in Q2FY24. Profit after tax margin increased by 70 bps YoY to 7.1% in Q2FY25 as against 6.4% in Q2FY24. H1FY25: Total income grew by 9.0% YoY to Rs 331.3 crore in H1FY25 as against Rs 304.0 crore in H1FY24. EBITDA increased by 13.2% YoY to Rs 49.4 crore as compared to Rs 43.6 crore in H1FY24. EBITDA margin stood at 14.9% in H1FY25 as against 14.3% in H1FY24, an increase of 60 bps YoY. Profit after tax witnessed a growth of 29.1% YoY to Rs 23.3 crore in H1FY25 as compared to Rs 18.0 crore in H1FY24. Profit after tax margin increased by 110 bps YoY to 7.0% in H1FY25 as against 5.9% in H1FY24. Consolidated Financiial Highlights: Q2FY25: Total income grew by 35.2% YoY to Rs 285.9 crore in Q2FY25 as against Rs 211.5 crore in Q2FY24. EBITDA increased by 28.2% YoY to Rs 34.1 crore compared to Rs 26.6 crore in Q2FY24. EBITDA margin stood at 11.9% in Q2FY25. Profit after tax witnessed a growth of 40.0% YoY to Rs 17.5 crore in Q2FY25 compared to Rs 12.5 crore in Q2FY24. Profit after tax margin stood at 6.1% in Q2FY25. H1FY25: Total income grew by 31.1% YoY to Rs 569.6 crore in H1FY25 as against Rs 434.4 crore in H1FY24. EBITDA increased by 25.9% YoY to Rs 68.1 crore compared to Rs 54.1 crore in H1FY24. EBITDA margin stood at 12.0% in H1FY25. Profit after tax witnessed a growth of 40.5% YoY to Rs 35.9 crore in H1FY25 compared to Rs 25.5 crore in H1FY24. Profit after tax margin stood at 6.3% in H1FY25. Atul Aggarwal, Managing Director of Sterling Tools, said: “We are pleased to report another strong operational performance across key financial and strategic parameters for the first half of the fiscal year. Total income increased by 31.1% YoY, reaching Rs 569.6 crore in H1FY25. This robust growth was primarily driven by the continued strength of our SGEM business, which has made significant strides. The revenue share of SGEM in the overall mix has grown to 42% in H1FY25, compared to 30% in the same period last year. Our EBITDA rose by 25.9% year-on-year to Rs 68.1 crore, driven by a combination of higher turnover and operational leverage. We are excited to announce our strategic partnership with Kunshan GLVAC Yuantong New Energy Technology Co., Ltd (GLVAC YT), a leading Chinese player in the EV and Hybrid EV market space. This collaboration will focus on manufacturing high-voltage DC contactors and relays in India for Electric and Hybrid Vehicles, a critical segment in the rapidly growing EV & HEV market space. As we navigate these exciting times, we remain focused on innovating new products, expanding our margins, and strengthening relationships with our clients. Our strategic initiatives, including the collaboration with Yongin and now GLVAC YT, position us as a leader in the development of electronics & electrical components, particularly in the EV and hybrid vehicle markets. We are well-positioned to capitalize on the current momentum and are fully prepared to seize upcoming opportunities, ensuring sustainable and robust performance moving forward.” Result PDF