Suprajit Engineering: Financial Growth, Market Trends & Future Outlook | Exclusive 2025

Suprajit Engineering: Latest Performance and Market Trends

Suprajit Engineering Financial Performance

Suprajit Engineering has shown steady growth over the past year. The company reported a consolidated revenue of ₹2,290 crores for the nine months ending December 31, 2024, reflecting an 8% increase compared to the previous year’s ₹2,113 crores.

During the same period, operational EBITDA rose by 28% to ₹295 crores, up from ₹231 crores last year. The standalone revenue grew by 14%, reaching ₹1,283 crores, while standalone EBITDA improved by 13%, standing at ₹226 crores.

For Q3 FY25, the company reported:

• Consolidated revenue of ₹782 crores, up 8% YoY.
• Operational EBITDA of ₹111 crores, marking a 28% increase.

By the end of December 2024, Suprajit Engineering had a total debt of ₹627 crores, while its cash surplus investments in mutual funds and bonds stood at ₹276 crores.

Market Overview

The Indian automotive sector has experienced slower-than-expected growth. Passenger vehicle sales remained flat, while two-wheelers saw moderate growth.

In the U.S., market conditions remained neutral, influenced by political uncertainty and tariff concerns. Meanwhile, Europe continues to face economic instability, affecting OEMs and Tier 1 suppliers. On the other hand, China is expanding its market share, despite facing domestic challenges.

Business Division Performance

Suprajit Controls Division (SCD)

• Revenue grew by 5%, while EBITDA surged over 100%.
• Achieved a double-digit EBITDA margin of 12% for the first time.
• Faced challenges in Mexico due to tariffs and labor costs.
• Plans to source motors from India to boost margins.

Domestic Cable Division (DCD)

• Continued profitable growth by expanding in the aftermarket sector.
• Increased focus on STC products and braking system commercialization.

Phoenix Division

• Margins improved, but top-line growth remained slow.
• Gained strong traction with premium global customers.

Suprajit Electronics Division (SED)

• Revenue was impacted by product mix changes, with margins around 5%.
• Secured key contracts with EV two-wheeler brands and global off-highway projects.
• Installed a new SMT production line to expand capacity.

SCS Acquisition and Restructuring

Suprajit Engineering is still integrating and turning around the SCS acquisition. The process has faced operational inefficiencies due to complex relocations. The company expects restructuring costs to continue for the next few quarters.

The second phase of the acquisition, involving China and Canada, is currently under discussion and is expected to conclude by Q4 FY25 or early Q1 FY26.

Operational Improvements

• Implemented operational excellence teams to improve efficiency across plants.
• Optimized capacity in Morocco, shifting from three-shift to one-shift operations.

Challenges and Future Outlook

• The global automotive sector remains slow, creating short-term hurdles.
• Restructuring costs will continue, but management remains optimistic about future growth.
• The focus is on securing new contracts and leveraging internal synergies to enhance profitability.

Strategic Insights

The company believes that restructuring efforts will ensure long-term profitability and operational flexibility. While geopolitical and tariff uncertainties pose challenges, Suprajit Engineering is confident in its ability to navigate risks effectively.

FAQs

1. How did Suprajit Engineering perform financially in 2024?

Suprajit Engineering reported an 8% revenue growth and 28% EBITDA growth for the first nine months of FY25.

2. What are the key challenges faced by the company?

The company faces challenges in the global automotive sector, tariff issues in Mexico, and ongoing restructuring costs from the SCS acquisition.

3. What is the company’s outlook for future growth?

Management remains optimistic, focusing on operational efficiency, new contracts, and strategic sourcing to improve margins.

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