Auto Parts & Equipment company Sterling Tools announced Q4FY24 & FY24 results: Sterling Tools reported a 21% growth in total income, reaching Rs 938.5 crore in FY24 over the previous year. Sterling Tools reported a 12.5% growth in total income, reaching Rs 270.2 crore in Q4FY24 over the previous year. The Adjusted EBITDA margin stood at 12.4% for FY24 while Profit After Tax (PAT) margin was reported at 5.9%. Profit before tax for Q4FY24 was at 21.3 crore, up by 7.9% YoY. Profit before tax for FY24 was at 71.8 crore, up by 7.7% YoY. Sterling Gtake E-Mobility Limited, a subsidiary of Sterling Tools, witnessed revenue growth of 86% in FY24, amounting to Rs 323.8 crore. Commenting on the Q4 & FY24 performance, Atul Aggarwal, Managing Director of Sterling Tools limited stated: "During FY24, our consolidated total income grew by 21.1% to Rs 938.5 crore on a YoY basis. The growth is higher as compared to domestic automobile industry growth of 12.5% for the same period. The consolidated adjusted EB/TOA in FY24 is higher by 15.8% as against FY23 while PAT growth is 15.6% YoY. The revenue generated by SGEM grew from Rs 174.3 crore in FY23 to Rs 323.8 crore in FY24, a substantial increase of 86%. SGEM now accounts for 35% of our consolidated revenue, up from 23% in FY23. Additionally, we are excited to announce that Sterling Tools has entered into an MoU with South Korea's Yongin Electronics Co. Ltd., to establish an EV Components Facility in India. This strategic partnership is anticipated to generate business of around Rs 200 crore p.a. in next 5 years. This venture marks a significant stride towards advancing the production of electronic components in the country. Against this backdrop, the board has approved investments in two companies, named Sterling E-mobility Pvt Ltd and Sterling Tech Mobility Ltd., transforming them into wholly owned subsidiaries of Sterling Tools Ltd. We announced segregation of Chairman and Managing Director roles in order to provide greater focus to electric vehicles and other green technology verticals. In line with our succession strategy, we have also initiated role transitions, elevating members of next generation to assume expanded roles and responsibilities within the company. We are optimistic about the future of our company and our industry. We believe that our focus on innovation, customer service, and operational excellence will continue to drive growth and profitability in FY25." Result PDF
Conference Call with Sterling Tools Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
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Conference Call with Sterling Tools Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.