In This Article:
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Revenue Growth (YoY): 17% for Q2 FY25.
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EBITDA Growth (YoY): 15% for Q2 FY25.
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PAT Growth (YoY): 11% for Q2 FY25.
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EBITDA Margin: 23% for Q2 FY25.
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Total Income (Q2 FY25): INR 9,069 million.
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EBITDA (Q2 FY25): INR 2,083 million.
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PAT (Q2 FY25): INR 1,259 million.
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Total Income Growth (QoQ): 5% for Q2 FY25.
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EBITDA Growth (QoQ): 8.6% for Q2 FY25.
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PAT Growth (QoQ): 7.4% for Q2 FY25.
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Total Income (H1 FY25): INR 17,703 million.
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EBITDA (H1 FY25): INR 4,001 million.
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PAT (H1 FY25): INR 2,430 million.
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EBITDA Margin (H1 FY25): 22.6%.
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PAT Margin (H1 FY25): 14.9%.
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Standalone Revenue Growth (YoY): 6.5% for Q2 FY25.
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Standalone EBITDA Growth (YoY): 8% for Q2 FY25.
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Standalone PAT Growth (YoY): 8.7% for Q2 FY25.
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Standalone EBITDA Margin: 23.8% for Q2 FY25.
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Standalone PAT Margin: 15.1% for Q2 FY25.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Shriram Pistons & Rings Ltd (NSE:SHRIPISTON) reported a strong year-on-year revenue growth of 17% for the quarter, demonstrating robust demand for its products.
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The company achieved a 15% growth in EBITDA and an 11% increase in profit after tax (PAT), indicating improved operational efficiency.
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Despite challenging market conditions, the company managed a sequential top-line growth of 5% quarter-on-quarter, with EBITDA and PAT growing by 9% and 7% respectively.
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The company is actively pursuing strategic initiatives to broaden its product offerings, including technology-backed components for hybrid, hydrogen, and other alternative fuel solutions.
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Shriram Pistons & Rings Ltd (NSE:SHRIPISTON) has expanded into electric vehicle mobility solutions and high precision injection molded parts, with significant progress in these areas.
Negative Points
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The global automotive market has been affected by a downturn in EU production volumes and geopolitical tensions, impacting export sales.
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Passenger and commercial vehicle segments faced pressure, posting lower single-digit growth, which could affect future performance.
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The company is experiencing challenges in the export market due to geopolitical situations, which may continue to impact sales.
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There is a concern about OEMs cutting down production, which could affect the company's growth in the second half of the year.
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The company carries a reasonable amount of debt on its balance sheet, which could pose financial risks if not managed properly.
Q & A Highlights
Q: How does Shriram Pistons & Rings Ltd view the market outlook for the second half of the year, especially with concerns around OEM production cuts? A: Krishnakumar Srinivasan, CEO, acknowledged the concerns but expressed optimism, noting that the company has been successful in securing new business and expects to outperform the market. Despite OEMs projecting low single-digit growth, Shriram Pistons aims to continue its growth trajectory by penetrating new markets and enhancing aftermarket outreach.