Sansera Engineering Limited — Earnings Release 2022

May 23, 2022

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May 23, 2022

The National Stock Exchange of India Ltd Exchange Plaza, C-1, Block G Bandra – Kurla Complex Mumbai 400051 Scrip Symbol: SANSERA

The Department of Corporate Services BSE Limited, P.J. Towers, Dalal Street Mumbai 400001 Scrip Code: 543358

Dear Sir/ Madam

Subject: Earning Release

Please find attached a copy of Earning Release on the audited financial results of the Company for the quarter and year ended on March 31, 2022.

The above announcements will also be made available on the website of our Company at www.sansera.in.

Kindly take the same in your record.

Thanking you,

for Sansera Engineering Limited

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Rajesh Kumar Modi Company Secretary and Compliance Officer

Encls: a/a

SANSERA ENGINEERING LIMITED

(Formerly Sansera Engineering Pvt Ltd)

Reg Off: No. 143/A, Jigani Link Road, Bangalore-560 105, India, Tel: +91 80-27839081/82/83. Fax: +91 80-27839309 E-mail id: info@sansera.in Website: www.sansera.in CIN: L34103KA1981PLC004542

Earnings Release

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SANSERA ENGINEERING LIMITED

Q4 & FY22 Consolidated Results

– Monday, 23[rd] May, 2022, Bengaluru Sansera Engineering Limited, known for developing complex and critical precision engineered components for the automotive and non-automotive sectors over multiple decades, today announced its audited Financial Results for the quarter and year ended March 31[st] , 2022.

Consolidated Result Highlights

Crossed Achieved Rs. 20.0 Bn Rs. 5.8 Bn total revenues mark in FY22 Highest ever quarterly total revenues in Q4FY22

Particulars (Rs. in Mln)	Q4FY22	Q4FY21	YoY	FY22	FY21	YoY
Total Revenue	5,808	4,960	17%	20,045	15,724	27%
EBITDA	1,000	1,044	-4%	3,491	2,952	18%
EBITDA Margin	17.2%	21.1%		17.4%	18.8%
Profit After Tax	374	472	-21%	1,319	1,099	20%
Profit After Tax Margin	6.4%	9.5%		6.6%	7.0%

Sales Mix – Q4FY22

• › By Geographies : India – 63%, Europe – 24%, USA – 8% and Other Foreign Countries – 5%

• › By End-Use Segments: Auto-ICE - 83%, Auto-Tech Agnostic & xEV - 7% and Non-auto - 10%

Sales Mix – FY22

• › By Geographies : India – 63%, Europe – 24%, USA – 9% and Other Foreign Countries – 4%

• › By End-Use Segments: Auto-ICE - 83%, Auto-Tech Agnostic & xEV - 6% and Non-auto - 11%

Recent Industry Awards

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Earnings Release

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Key Highlights

• › FY22 was one of the most challenging years that the industry has ever faced yet Sansera achieved a 27% growth in total revenues and crossed Rs. 20.0 bn annual revenue mark

• › Sansera recorded a 17% YoY growth in the total revenues in Q4FY22

• › In an inflationary environment, Sansera was able to pass on the increase in RM prices to domestic customers in Q4FY22. However, gross margins had a decline of 1.9% primarily due to lag in price increase on domestic sales and marginal drop in margins on international revenues due to higher RM prices

• › Drop in Q4FY22 EBITDA was driven by fall in gross profit, higher employee cost (salary increment and ESOP costs), higher other expenses which grew in line with sales

• › On debt front, our net debt stood close at Rs. 5,948.2 Mln

• › Phase 1 of setting up a dedicated facility for hybrid and electric components within our existing Plant at Bengaluru has completed. Production lines for 2W-xEV and hybrid-PVs have begun mass production in Q4FY22

• › The Board of Directors has recommended a dividend of 100% of the face value of Rs. 2.00 per equity share for FY22

• › Appointed Mr. Samir Purushottam Inamdar, as Additional Director (Category: NonExecutive Independent Director) w.e.f., May 23, 2022. He has an extensive general management experience of over 40 years. Previously, he served as the President and CEO of major businesses of General Electric in South Asia and as the CEO & Managing Director of Tyco Electronics in South Asia, for over 11 years.

Commenting on the performance Mr. B R Preetham Group CEO, Sansera Engineering

Limited said, “This has been a milestone year in the history of Sansera marked by our IPO and we are thankful to you for your tremendous support. With our perseverance, we navigated through one of the most challenging years that the industry has ever faced and crossed the Rs. 20 Bn revenues mark in FY22. We also registered our highest ever quarterly sales of Rs. 5,788 Mln in Q4FY22. We are delighted to share with you that the Board has in aggregate approved dividend distribution to shareholders.

With a 6% degrowth in FY22, the industry also faced some headwinds – increase in raw material costs and semiconductor prices, and supply chain disruptions. The semi conductor shortage seems to be easing to some extent. However, the input costs will continue to be a challenge in this year. Our teams are looking into cost structure improvements and value engineering initiatives.

In line with our strategic priorities, we have built a very healthy order pipeline with annual peak revenues growing by 20% (vs Sep-21) to Rs. 14.9 Bn (Apr-22).

Going forward, we remain focused on the qualities that differentiate Sansera, which are operating excellence, product quality, ensuring the continuity of supply to our customers, and generating profits. We have witnessed a strong momentum in demand for new components/ business and currently we have about 255 components under various stages of development (including auto and non-auto other than aerospace). We are also working on another ~300 components on various stages of RFQ. The aerospace pipeline which typically works in large packages is also pretty hefty. I’d like to reiterate that we are committed to consolidate and strengthen global market share in existing portfolio as well as diversify into non-auto and technology agnostic components (including xEVs).”

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Earnings Release

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About Sansera Engineering Limited

Sansera Engineering Limited was incorporated in 1981. Sansera is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors. Within the automotive sector, we manufacture and supply a wide range of precision forged and machined components and assemblies, such as connecting rod, rocker arm, crankshaft, gear shifter fork, stem comp, and aluminium forged parts, which are critical for engine, transmission, suspension, braking, chassis and other systems for the 2-wheeler, passenger vehicle and commercial vehicle verticals. Within the non-automotive sector, the Company manufactures and supplies a wide range of precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods. For more information about the Group and its businesses, please visit www.sansera.in

Safe Harbour Statement:

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.

For more information please contact:

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Sansera Engineering Limited CIN: L34103KA1981PLC004542 Mr. Rajesh Kumar Modi, Company Secretary & Compliance Officer Email id: rajesh.modi@sansera.in

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Strategic Growth Advisors Pvt Ltd. CIN: U74140MH2010PTC204285 Shikha Puri / Hinal Kothari Email id: shikha.puri@sgapl.net / hinal.kothari@sgapl.net Tel No: +91 9819282743 / +91 9930133428

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