Suprajit Engineering held its Q4 FY25 earnings conference call on May 29, 2025.
Consolidated revenue, excluding SCS, grew by 7% to ₹3,106 crore for the year ended March 31, 2025, compared to ₹2,896 crore in the previous year.
Consolidated operational EBITDA increased by 23% to ₹401 crore for FY25, versus ₹326 crore in the previous year.
Stand-alone revenue grew by 12% to ₹1,718 crore, while stand-alone operational EBITDA increased by 8% to ₹298 crore.
The Board recommended a final dividend of 175% in addition to an interim dividend of 125%, aggregating to 300% for FY25, compared to 250% in the previous year.
Total debt stood at ₹657 crore as of March 31, 2025, with surplus cash of ₹251 crore invested in mutual funds and bonds.
Suprajit Controls Division (global operations) saw stable revenues and a significant improvement in FY25 EBITDA, with margins up by 65% to around 9.7%.
The Domestic Cable Division's revenue increased by 13%, but margins compressed due to staffing increases at the corporate and technology center.
Phoenix Lamps Division recorded flat revenue but EBITDA increased to 22.7%, driven by mix and efficiencies; however, Q4 EBITDA declined due to customer write-offs.
The Electronics Division's revenue increased by approximately 27%, but Q4 was weaker than expected due to a large customer's sales drop.
Suprajit Tech Center's (STC) new building is progressing as planned and is expected to be ready this financial year; STC has a technical tie-up with Blubrake, Italy, for an innovative ABS product.
Morocco operations are under close monitoring with an operational excellence team on the ground, projects are progressing well, and 90% of the warehouse has been shifted to Hungary.
Canada and China acquisitions are expected to close shortly and should add positively to the results.
The company expects double-digit revenue growth for the group, excluding SCS, and an EBITDA margin of 12% to 14%.
A robust order book is seen at SCD, with traction in all locations.
DCD is expected to see good cable growth, especially in the aftermarket, with traction in braking systems.
PLD expects revenue to be at similar levels, focusing more on margin growth, with potential traction with global customers in the U.S.
SCS integration will be the focus this year, with efforts to reduce purchasing costs; SCS is expected to reach EBITDA positive by Q4 and consolidate completely in FY27 under SCD.
Management Commentary:
Ajith Kumar Rai, Founder and Chairman, noted that despite global turmoil, Suprajit had a stable performance, with the last two quarters of the Controls Division showing double-digit EBITDA.
The company expects to have another robust solid year with a good double-digit growth and hopefully a better margin than what they had for the last year.