Frontier Springs Ltd. — Earnings Release 2024

Feb 9, 2024

Dhruv Digitally signed by Dhruv Bhasin Bhasin Date: 2024.02.09 15:59:15 +05'30'

Q3FY24 PRESS AND MEDIA RELEASE

Kanpur, February 09, 2024

FRONTIER SPRINGS, INDIA’S LEADING PLAYER IN HOT COILED COMPRESSION SPRINGS ANNOUNCED ITS FINANCIAL RESULTS FOR Q3FY24.

REVENUE FROM OPERATIONS EBITDA PAT ₹33.02 Cr ₹5.16 Cr ₹3.22 Cr 18.95% Y-O-Y 91.58% Y-O-Y 113.98% Y-O-Y

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

We are pleased to report that both our business verticals, the coil springs business and the forging business, have sustained their robust performance, contributing to an improved profitability for the quarter.

Our optimistic outlook is further bolstered by the progress made towards achieving the previously stated guidance of ₹150 crores for the current financial year. A notable highlight of the quarter was securing a substantial order worth ₹52 crores for the supply of Air Springs to the Indian Railways, which is progressing on schedule. The momentum continued with the receipt of additional orders in the current month, and we anticipate this demand to not only persist but also accelerate in the future.

In a significant step towards expanding our market reach, we have completed our obligations and applied to become a "Regular Source" for the supply of Air Springs. This status will enable us to bid for all government tenders of Air Springs, and we expect to receive approval in the coming weeks.

While our forging business encountered some challenges with the installation of the 6-ton hammer, we are optimistic about completing the installation and commencing trial runs by Q1FY25. The additional capacity from this expansion is expected to positively impact our financial performance starting from Q2FY25.

The demand outlook from the Indian Railways remains positive, and we foresee no challenges on this front. The government's recent budget, with an allocation of ₹2,52,000 crores towards the transformation of the Indian Railways, including the conversion of 40,000 conventional rail bogies to ‘Vande Bharat standards,’ presents a substantial opportunity. This transition necessitates an upgrade to Air Springs from traditional coil springs, positioning companies like ours to significantly benefit from this initiative.

We are highly confident in our future prospects and growth trajectory. Frontier Springs Limited is committed to accelerating its growth rates and capitalising on the opportunities ahead, leveraging the government's ambitious plan to modernise the Indian Railways.

We thank our stakeholders for their continued support and trust in our capabilities, and we look forward to delivering on our promises and contributing to the nation's infrastructure development.

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Q3FY24 PRESS AND MEDIA RELEASE

Financial Highlights

Financial Highlights
							₹IN	C RORE
PARTICULARS	Q3FY24	Q2FY24	Q3FY23	Q-O-Q	Y-O-Y	9MFY24	9MFY23	Y-O-Y
Revenue From Operations	33.02	32.75	27.76	0.83%	18.95%	91.27	78.20	16.71%
Other Income	0.05	0.05	0.14	(9.34%)	(65.63%)	0.15	0.43	(64.59%)
Total Income	33.07	32.81	27.91	0.81%	18.51%	91.42	78.63	16.27%
Total OperatingExpense	27.86	28.03	25.07	-0.63%	11.14%	77.92	69.26	12.50%
EBITDA	5.16	4.72	2.69	9.47%	91.58%	13.35	8.94	49.31%
EBITDA Margin(%)	15.63%	14.41%	9.70%	123 bps	593 bps	14.62%	11.43%	319 bps
Finance Cost	0.04	0.04	0.08	(7.19%)	(50.77%)	0.14	0.26	(45.83%)
Depreciation And Amortisation Expenses	0.86	0.90	0.74	(3.58%)	16.40%	2.64	2.21	19.40%
Profit Before Tax	4.31	3.83	2.01	12.45%	113.99%	10.73	6.90	55.39%
Profit After Tax	3.22	2.85	1.51	12.83%	113.98%	7.94	5.07	56.51%

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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