Revenue share of subsidiary Sterling Gtake E-Mobility in the overall mix grew by 12% on year in H1 FY25.
16 Nov 2024 | 3576 Views | By Autocar Professional Bureau
Automotive fastener manufacturer, Sterling Tools Ltd, posted a consolidated profit after tax of Rs 17.5 crore in Q2FY25, marking a 40% increase from Rs 12.5 crore in the same quarter last year. The company's consolidated revenue grew by 35.2% year-on-year to reach Rs 285.9 crore. Sterling attributed this robust growth ...
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Automotive fastener manufacturer, Sterling Tools Ltd, posted a consolidated profit after tax of Rs 17.5 crore in Q2FY25, marking a 40% increase from Rs 12.5 crore in the same quarter last year. The company's consolidated revenue grew by 35.2% year-on-year to reach Rs 285.9 crore. Sterling attributed this robust growth to the growth of its wholly-owned subsidiary, Sterling Gtake E-Mobility Ltd (SGEM), which has made significant strides.
Consolidated EBITDA for the quarter increased by 28.2% to Rs 34.1 crore, compared to Rs 26.6 crore in Q2FY24, with an EBITDA margin of 11.9%.
On a standalone basis, Sterling reported more modest growth, with total income increasing by 8.4% to Rs 168.4 crore in Q2FY25. The standalone profit after tax grew by 19.4% to Rs 11.9 crore while EBITDA rose by 11.9% to Rs 25.3 crore.
For the first half of FY25, the company recorded a consolidated total income of Rs 569.6 crore, up 31.1% from Rs 434.4 crore in H1 FY24. H1 consolidated EBITDA rose by 25.9% year-on-year to Rs. 68.1 crore, driven by a combination of higher turnover and operational leverage, company management said.
The revenue share of subsidiary SGEM in the overall mix grew to 42% in H1 FY25, compared to 30% in the same period last year. The company has also announced a strategic partnership with Kunshan GLVAC Yuantong New Energy Technology Co., Ltd, a Chinese player in the EV and Hybrid EV market. The collaboration aims to manufacture high-voltage DC contactors and relays in India for Electric and Hybrid Vehicles.
Atul Aggarwal, Managing Director of Sterling Tools Limited, said, “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.” He added they are well-positioned to capitalise on the current momentum and are fully prepared to seize upcoming opportunities, ensuring sustainable and robust performance moving forward.
STL, which was incorporated in 1979, manufactures high tensile cold forged automotive fasteners for various segments including passenger cars, two-wheelers, commercial vehicles, agri-equipment, and construction equipment. The company serves leading OEMs in both domestic and international markets.