AI assistant
Suprajit Engineering Ltd. Regulatory Filings 2021
61232_rns_2021-11-10_30d56c63-5907-4d80-8bc4-eb8381e6538d.pdf
Regulatory Filings
Open in viewerOpens in your device viewer
Registered & Corporate Office : #100 & 101, Bommasandra Industrial Area, Bengaluru - 560 099. Tel: +91-80-43421 l 00, Fax: +91-80-27833279 E-mail: [email protected] Web : http://www.suprajit.com Corporate Identity Number (CIN) : L29199KA l 985PLC006934
November 10, 2021
BSE Limited Department of Corporate Services P. J. Towers, 25th Floor, Dalal Street, Mumbai- 400 001 Ref: 532509
National Stock Exchange of India Ltd Exchange Plaza, C-1, Block-G, Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 Ref: SUPRAJIT
Dear Sirs,
Sub: Press Release.
Please find enclosed Press Release dated November 10, 2021.
This is for your Information and records.
Thanking you,
Yours faithfully,
For Suprajit Engineering limited
Meda~;:: CFO & Company Secretary
Encl: as above
PRESS RELEASE November 10, 2021.
RESULTS AND BUSINESS UPDATE FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2021.
RESULTS UPDATE:
| Consolidated unaudited results for the quarter ended: | (Rs. in Million) | ||||
|---|---|---|---|---|---|
| Q2 SEP 2021 |
Q2 SEP 2020 |
Growth | |||
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of taxes) |
4,936.7 | 4,431.4 | 11.4% | ||
| EBIDTA (Operational) | 800.6 | 16.2% | 734.8 | 16.6% | 8.9% |
Standalone unaudited results for the quarter ended:
| Q2 SEP 2021 |
Q2 SEP 2020 |
Growth | |||
|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of | 3,547.8 | 3,117.2 | 13.8% | ||
| taxes) | |||||
| EBIDTA (Operational) | 723.4 | 20.4% | 580.0 | 18.6% | 24.7% |
Phoenix Lamps Division (Including Trifa & Luxlite) for the quarter ended:
| Q2 SEP 2021 |
Q2 SEP 2020 |
Growth | |||
|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of taxes) | 925.4 | 921.7 | 0.4% | ||
| EBIDTA (Operational) I |
89.2 I |
9.6% I |
136.3 I |
14.8% I |
(34.5%) i I |
Suprajit Engineering Limited Non-automotive (SENA) Division (including India and Wescon US) for the quarter ended:
| Q2 SEP 2021 |
Q2 SEP 2020 |
Growth | |||
|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of taxes) | 1,010.7 | 786.2 | 28.5% | ||
| EBIDTA (Operational) I |
115.1 I |
11.4% I |
108.7 I |
13.8% I |
5.8% I I |
Suprajit Engineering Limited - Automotive Cable division (including Suprajit Automotive and Suprajit Europe) for the quarter ended:
| Q2 SEP 2021 |
Q2 SEP 2020 |
Growth | |||
|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of taxes) | 3,000.7 | 2,723.6 | 10.2% | ||
| EBIDTA (Operational) | 596.3 | 19.9% | 489.8 | 18.0% | 21.7% |
Above Operational EBITDA information are without considering all non-operational income, forex gain / loss.
| SEPTEMBER 2021 |
SEPTEMBER | 2020 | Growth | ||
|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of taxes) |
8,552.9 | 6,206.1 | 37.8% | ||
| EBIDTA (Operational) | 1,292.8 | 15.1% | 686.5 | 11.1% | 88.3% |
Standalone unaudited results for the half year ended:
| SEPTEMBER 2021 |
SEPTEMBER | Growth | |||
|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of | 5,638.5 | 3,992.0 | 41.2% | ||
| taxes) | |||||
| EBIDTA (Operational) | 1,042.6 | 18.5% | 502.4 | 12.6% | 107.5% |
Phoenix Lamps Division (Including Trifa & Luxlite) for the half year ended:
| SEPTEMBER 2021 |
SEPTEMBER 2020 |
Growth | ||||
|---|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | ||
| OPERATING REVENUE (Net of taxes) | 1,535.3 | 1,259.0 | 21.9% | |||
| EBIDTA (Operational) | 127.9 I |
8.3% | I 80.1 |
6.4% I |
I I 59.7% |
Suprajit Engineering Limited Non-automotive (SENA) Division (including India and Wescon US) for the half year ended:
| SEPTEMBER 2021 |
SEPTEMBER | Growth | ||||
|---|---|---|---|---|---|---|
| PARTICULARS | Amount | % Amount |
% | |||
| OPERATING REVENUE (Net of taxes) |
2,048.2 | 1,419.1 | 44.3% | |||
| EBIDTA (Operational) | 276.7 | I 13.5% |
I 148.9 |
I 10.5% |
I 85.8% |
Suprajit Engineering Limited - Automotive Cable division (including Suprajit Automotive and Suprajit Europe) for the half year ended:
| SEPTEMBER 2021 |
SEPTEMBER | Growth | |||
|---|---|---|---|---|---|
| PARTICULARS | Amount | % | Amount | % | |
| OPERATING REVENUE (Net of taxes) | 4,969.4 | 3,528.1 | 40.9% | ||
| EBIDTA (Operational) | 888.2 | 17.9% | 457.5 | 13.0% | 94.1% |
Above Operational EBITDA information are without considering all non-operational income, forex gain / loss.
Group debt level (Rs. in Million):
| DEBT LEVEL (Group) | Sep-21 | Mar-21 |
|---|---|---|
| Long Term | 495 | 923 |
| Short Term | 2,669 | 2,354 |
| TOTAL | 3,164 | 3,277 |
OPERATIONS:
Demand - Supply Constraints and Covid-19:
- o The chip shortage, both in India and worldwide, outweighed the disruption caused by the pandemic during this quarter.
- o Production disruptions, both planned and unplanned, at various OEMs in India and elsewhere in the world, caused significant reduction in business volumes. This chip shortage is expected to continue its disruption during the rest of this year.
- o Covid-19 pandemic had lesser impact during the quarter with vaccination drive gathering good pace across the world and India, in particular.
- o Covid vaccination coverage across the Suprajit group of companies has been at significantly higher levels, thereby creating better operating environment within the group.
- o The other major disruptions relating to supply chain constraints, port congestion, container shortages and significant material cost increases have had an abnormal impact on the margins.
- o Q2 performance has been satisfactory despite these factors.
BUSINESS & FINANCIAL UPDATE:
Highlights of the Results :
(Rs. In million)
| Q2 Sep |
Q2 Sep | HY Sep |
HY Sep | |||
|---|---|---|---|---|---|---|
| Standalone: | 21-22 | 20-21 | Growth | 21-22 | 20-21 | Growth |
| Operating Revenue | 3,547.8 | 3,117.2 | 13.8% | 5,638.5 | 3,992.0 | 41.2% |
| Operating EBIDTA | 723.4 | 580.0 | 24.7% | 1,042.6 | 502.4 | 107.5% |
| Consolidated: | ||||||
| Operating Revenue | 4,936.7 | 4,431.4 | 11.4% | 8,552.9 | 6,206.1 | 37.8% |
| Operating EBIDTA | 800.6 | 734.8 | 8.9% | 1,292.8 | 686.5 | 88.3% |
- o The overall H1 performance has been satisfactory, despite headwinds, with improvements in operational revenue and EBIDTA.
- o The results for the first half had certain one-off impacts relating to Wescon paycheck protection program, reversal of provision for Mutual Funds, expenses, certain price increase impacts relating to previous period, etc.
- o Pricing pressure was felt in the Phoenix Lamps Division (PLD), wherein abnormal material cost increases had to be partially absorbed by the Company, in certain segments.
- o The planned expansion at Narsapura, near Bangalore, as well as PLD will be completed before end of this financial year.
- o The festival season sales, which is critical for the automotive business, has been muted in the passenger and 2 wheeler sectors, due to chip shortage and low offtake in certain 2 wheeler segments.
The Group Companies:
- o Suprajit Automotive (SAL) and Suprajit Europe (SEU) together had a good quarterly sales growth with improved margins.
- o SENA sales performance had a good improvement for the quarter and the margins have been stable for the half year.
- o Businesses at Trifa and Luxlite continue to be challenging as informed in the previous quarterly update. Management critically reviewed the provisions related to Luxlite, and have fully written down the investment value of Rs. 484.79 million in Luxlite. A provision for impairment of Rs. 127.25 million towards goodwill is also made.
- o The consolidated results of the company show healthy topline growth and stable margins.
COMMENTARY ON THE CURRENT QUARTER AND BALANCE YEAR :
- o The chip shortage is expected to continue throughout this quarter and the year and will have disruptions both planned and unplanned at the customers end. This is expected to have certain impact on the business during the second half of the year.
- o The continued challenges of high material prices, port congestion and container costs, shipment delays, etc., will also have an impact on the margins for the balance year.
- o The festival season has clocked below normal offtake of vehicles across the segments.
- o Company is taking every step to minimize the headwinds and expected to have a reasonable quarter and the balance year going forward, in line with its guidelines.
- o Company is planning an additional capex of about Rs. 125 crores for various new projects in hand, for the next 18 months. A groundbreaking ceremony for a new plant (≈140,000 SFT ) for a comprehensive aftermarket facility at Bommsandra Indl. Area was conducted during the quarter.
ACQUISITION OF LIGHT DUTY CABLE (LDC) UNIT OF KONGSBERG AUTOMOTIVE :
- o As notified earlier, the Company has signed a Definitive Share and Asset Purchase Agreement and Technical Support Agreement (TSA) with Kongsberg, to acquire LDC business unit. The Management believes that this is a transformational transaction in the coming years, in line with its overall strategy of `Derisk and grow profitably' and to emerge as a global leader in the control cables business.
- o The transaction is expected to close by end of February 2022. On completion, Suprajit's overall cable capacity will be 400 million / year with manufacturing footprints in China, Hungary and Mexico along with tech centre in Detroit.
- o In addition, LDC will also have engineering / business development support from multiple countries for customers. This will make Suprajit a truly a global leader in this business.
- o Electro-Mechanical Actuators (EMA) will be a good complementary fit into Company's product portfolio. EMA will be a key new technology for Indian customers.
- o Company will use a portion of the cash available and take some debt, ensuring optimal capital allocation to complete this transaction.
UPDATE ON SUPRAJIT TECHNOLOGY CENTRE (STC) :
- O STC, which was launched at the new location (as announced earlier) is now fully operational.
- O STC has multiple products under development and has made significant progress.
- O The following products are now in the final stage of multiple commercial launches over the next 12 months:
- )., Digital Speedo Meter
- ► Throttle position sensor
- ► Rotary sensor
- ► CBS Mechanisms
- ► Seeder gear boxes with electromechanical clutches.
- o Initial businesses won and orders expected on these products on an annualised basis are in excess of Rs. 100 crores / year, to start with.
- o Further businesses are being negotiated with various customers.
- o STC is expected to contribute significantly to the future growth plans of the Company.
About Suprajit Engineering Limited:
Suprajit is India's largest automotive cable and halogen bulb maker with an annual global capacity of 300 million cables and 110 million halogen bulbs. Suprajit's customers list includes mo~t Indian automotive majors. It also exports to many marquee global customers.
For further information, please contact:
| Mr.Medappa Gowda J | Mrs. Bhargavi Aithal |
|---|---|
| Chief Financial Officer& Company Secretary | AGM - Corporate Communications |
| Suprajit Engineering Limited | Suprajit Engineering Limited |
| Email: [email protected] | Email: [email protected] |
https :/ /www .suprajit.com/financia Is/
: 6: