Frontier Springs Ltd. — Earnings Release 2024

Nov 6, 2023

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Dhruv
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Bhasin

Digitally signed by Dhruv Bhasin DN: c=IN, st=Uttar Pradesh, 2.5.4.20=e88c1b34c75c64a2dafac1053373cec74df5c87488679c8f770c3ae53b6b7548, postalCode=208025, street=117 /N -21,Avon Market,Kakado,Naveen Nagar SO,Kanpur Nagar, pseudonym=cddacb1c19921792b7176705c6402e5b, serialNumber=078898a04b0751c294f46328ff156eed0821dd95b99544839a31221e11bc7afc, title=6312, o=Personal, cn=Dhruv Bhasin Date: 2023.11.06 20:33:56 +05'30'

Q2FY24 PRESS AND MEDIA RELEASE

Kanpur, November 06, 2023

FRONTIER SPRINGS, INDIA’S LEADING PLAYER IN HOT COILED COMPRESSION SPRINGS ANNOUNCED ITS FINANCIAL RESULTS FOR Q2FY24.

REVENUE FROM OPERATIONS

₹ 32.75 Cr

22.34% Y-O-Y

EBITDA

PAT 4.72 Cr Cr ₹ 2.85 Cr 66.20% Y-O-Y 78.13% Y-O-Y

₹ 4.72 Cr Cr

Commenting on the performance, Kapil Bhatia , Managing Director, said:

I am delighted to present an update on our performance for Q2FY24, which reflects a continuation of our growth trajectory and strategic initiatives.

In Q2FY24 we delivered a robust performance with a 28% growth in top-line. Both our core verticals – Springs and Forging – have sustained their momentum, contributing significantly to our performance during the period. The margins we have witnessed this quarter are indicative of our business's true potential.

In a significant development for our Air Springs vertical, we have been approved as a "Developmental Source" by the Indian Railways. This accreditation empowers us to participate in tenders comprising 20% of the Indian Railways’ requirements for Air Springs. We are optimistic about the vertical’s contribution to our business, with substantial order execution anticipated in the next financial year.

We are in anticipation of the final nod as a "Regular source" for the supply of Air Springs to Indian Railways, which we expect to secure by Q1FY25. In light of the strong demand for Air Springs, we have decided to enhance our manufacturing capabilities, committing an additional capital expenditure of ₹ 5 crores. This investment will expand our production from 120 coach sets per month to 200, thereby aligning the Air Springs vertical’s capacity with the combined top-line potential of our Coil Springs and Forging Division.

Our expansion plans are well underway, and we aim to conclude these enhancements by the end of this fiscal year. With the completion of this initiative, we will be poised for strong growth. Furthermore, the arrival and ongoing installation of the 6-tonne hammer at our facility will augment our operational capacity and is a clear indicator of our commitment to growth. These strategic investments are set to be reflected in our financials from the subsequent year.

As we continue to fortify our position within the industry, the outlook for our products, with the Indian Railways, is exceptionally promising. Our focus on investment and innovation positions us well to achieve a top-line of ₹ 500 crores by 2027, as we capitalise on the opportunities that lie ahead.

In closing, our Q2FY24 performance has laid a solid foundation for sustained growth, and we remain dedicated to delivering value to our stakeholders in the coming years.

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Q2FY24 PRESS AND MEDIA RELEASE

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Financial Highlights

₹ IN CRORE

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|PARTICULARS|Q2FY24|Q1FY24|Q2FY23|Q-O-Q|Y-O-Y|H1FY24|H1FY23|Y-O-Y|
|Revenue From Operations|32.75|25.49|26.77|28.48%|22.34%|58.25|50.44|15.48%|
|Other Income|0.05|0.05|0.14|0.00%|(64.29%)|0.10|0.29|(65.52%)|
|Total Income|32.81|25.54|26.91|28.47%|21.92%|58.35|50.73|15.02%|
|Total Operating Expense|28.03|22.01|23.93|27.35%|17.13%|50.06|44.19|13.28%|
|EBITDA|4.72|3.48|2.84|35.63%|66.20%|8.19|6.25|31.04%|
|EBITDA Margin (%)|14.41%|13.65%|10.60%|76 bps|381 bps|14.06%|12.39%|167 bps|
|Finance Cost|0.04|0.06|0.10|(33.33%)|(60.00%)|0.10|0.18|(44.44%)|
|Depreciation And Amortisation Expenses|0.90|0.88|0.73|2.27%|23.29%|1.77|1.47|20.41%|
|Profit Before Tax|3.83|2.59|2.15|47.88%|78.14%|6.42|4.89|31.29%|
|Profit After Tax|2.85|1.86|1.60|53.23%|78.13%|4.71|3.56|32.30%|

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About Frontier Springs Limited

Founded in 1981, Frontier Springs began its journey as a manufacturer of Leaf Springs and Laminated Bearing Springs for Automobiles and Railways. Today, the company primarily produces Hot Coiled Compression Springs and forging items, catering especially to the needs of Wagon, Locomotives, and Carriage sectors. Registered with RDSO since 1990, Frontier Springs is a trusted supplier to the Indian Railways.

Frontier Springs’ manufacturing prowess is spread across two state-of-the-art facilities located in Kanpur, Uttar Pradesh, and Poanta Sahib, Himachal Pradesh. The company's portfolio has witnessed significant diversification, now encompassing forging items from 100 gm to 20 Kg and a specialised Spring Division that addresses the needs of both national and international heavy engineering sectors. Recently, the Company made a strategic foray into the production of Air Springs, marking a significant expansion in its product portfolio.

For further details, please get in touch

Dhruv Bhasin Abhishek Mehra

Company Secretary Investor Relations Advisor Frontier Springs Limited TIL Advisors c.s@frontiersprings.co.in abhishek@theinvestmentlab.in

Safe Harbour

This document which have been prepared by Frontier Springs Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This document has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Document. This Document may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Document is expressly excluded.

Certain matters discussed in this Document may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict.The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Document. The Company assumes no obligation to update any forward-looking information contained in this Document.

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