Sterling Tools’ consolidated net profit came in at Rs 18.4 crore, against Rs 13.1 crore in the year-ago period. EBITDA, or operating profit, grew 23.3% on year to Rs 34.1 crore while revenue from operations rose 28% to Rs 281.68 crore.
13 Aug 2024 | 2750 Views | By Kiran Murali
Faridabad-based auto component maker Sterling Tools Ltd today reported a 40.9% on-year growth in its consolidated net profit for the first quarter of the current financial year. The company witnessed strong growth in topline with significant contributions from its electric vehicle business Sterling Gtake.
For the quarter ended June, ...
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Faridabad-based auto component maker Sterling Tools Ltd today reported a 40.9% on-year growth in its consolidated net profit for the first quarter of the current financial year. The company witnessed strong growth in topline with significant contributions from its electric vehicle business Sterling Gtake.
For the quarter ended June, Sterling Tools’ consolidated net profit came in at Rs 18.4 crore, against Rs 13.1 crore in the year-ago period. EBITDA, or operating profit, grew 23.3% on year to Rs 34.1 crore while revenue from operations rose 28% to Rs 281.68 crore.
Sterling Tools is the second-largest automotive fastener manufacturer in the country. The company offers motor control units for electric vehicles through its wholly-owned subsidiary Sterling Gtake E-Mobility Ltd (SGEM). SGEM now contributes 35 percent of its consolidated revenue, up from 23 percent in FY23.
“SGEM continues to gain traction with total income witnessing a growth of 62.7% on a YoY basis. The revenue share of SGEM in the overall business has risen from 33% in Q1 FY24 to 43% in Q1 FY25. We are working to add to our EV product portfolio and continue to focus on customer diversification too,” Sterling Tools Managing Director Atul Aggarwal said.
Sterling Tools’ EBITDA margin, however, contracted to 12% from 12.4%. This can be primarily attributed to a strong growth in expenses during the quarter. Total expenses rose around 26% on year to Rs 259.73 crore. Apart from the expected increase in the cost of materials consumed, Sterling Tools saw its employee benefits expense jump 43% to Rs 22.33 crore, probably on account of some ESOP expenses.
The company noted that its adjusted EBITDA, excluding ESOP expense, increased by 33.9% on year to Rs 37.1 crore, while adjusted EBITDA margin expanded to 13.1% from 12.4% in the comparable quarter.
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