Press Releases

Setco Automotive 9M FY19 Sales Up 33.6% at INR 466 Crore

  • EBITDA in 9MFY19 stood at 67.71 Cr., up by 82.3% despite the expiry of Uttarakhand benefits

  • Profit After Tax in 9M FY19 stood at 24.20 Cr., up by 84.1% despite expiry of Uttarakhand Tax exemptions

  • Sales in Q3 FY19 stood at 160.42 Cr., up by 10.1% YoY

  • PAT of 7.21 Cr. in Q3 FY19, down 35% YoY due to normal tax rate of 34% in FY19 vs ~8% in Q3FY18

 

Setco Automotive Ltd. (NSE: SETCO | BSE: 505075), the largest manufacturer of clutches for Medium and Heavy Commercial Vehicles (M&HCV) in India, announced its financial result for the third quarter (Q3 FY19) ended December 31, 2018 and nine months (9M FY19) ended December 31, 2018.       

 

Setco Automotive reported a strong sales of INR 466 Cr. in 9M FY19, up by 33.6% YoY despite a slowdown in the M&HCV segment in Q3. On the back of robust growth and improved operating efficiencies, EBITDA in 9MFY19 stood at INR 67.71 Cr., up by 82.3% YoY. The company posted Profit after Tax of INR 24.20 Cr. in 9MFY19, up by 84.1% YoY.

 

The company reported sales of INR 160.42 crore in Q3 FY19, up by 10.1% YoY and EBITDA of INR 23.27 crore in the quarter, up by 6.9% YoY. The company posted Profit after Tax of INR 7.21 Cr. in Q3FY19, down by 35% YoY due to the normal tax rate of 34% applicable in FY19 as compared to ~21% in FY18 (actual rate was ~8% in Q3FY18).

 

Despite unanticipated liquidity crisis affecting MHCV industry sales and production, Setco’s sales from Original Equipment Manufacturer (OEM) segment grew by 9.9% and sales from Aftermarkets segment grew by 32.2% in this quarter. LavaCast (a subsidiary of Setco) ramps-up its capacity utilization to ~70% utilization in Q3 FY19 vs ~60% in Q2 FY19 and is expected to move up to around 80% during Q4 FY19. Additionally, with the recent inroads into the farm-equipment segment and the introduction of new generation clutches (ASD clutch) in US Aftermarket, the company is poised to grow significantly going forward.

 

Harish Sheth, Chairman & Managing Director at Setco Automotive, said, “This quarter, the NBFC liquidity crisis has temporarily affected the growth rate of MHCV sector. This is more of a short term correction, however, the long term fundamentals remain robust. With the liquidity crisis abating and impending switchover to BS-VI norms, we expect the demand to pick up significantly from the first quarter of the new fiscal. The growth-friendly measures announced in the budget, coupled with the reduction in interest rates announced recently would give a further flip to the underlying growth drivers of infrastructure and GDP growth.

 

Standalone – Key Financials of Q3 FY19 and 9M FY19

(Figures in INR Crore)

Particulars

Quarter Ended

Nine Month Ended

Year Ended

Q3 FY19

Q3 FY18

Growth

9M FY19

9M FY18

Growth

FY18

Sales

160.42

145.65

+10.1%

466.25

348.96

+33.6%

524.76

EBITDA

23.27

21.77

+6.9%

67.72

37.15

+82.3%

66.34

EBITDA %

14.51%

14.9%

(40bps)

14.5%

10.6%

+390bps

12.6%

Operating PBT

9.21

9.37

(1.7)%

27.60

1.28

+2055.8%

17.32

PAT

7.22

11.27

(35.9)%

24.20

13.14

+84.1%

28.81

EPS

0.54

0.84

1.81

0.98

2.15

 

Note – Expiry of Uttarakhand tax exemptions at the end of FY18. Normal tax rate of 34% is applicable in FY19 as compared to ~21% in FY18 (actual rate was ~8% in Q3FY18)

 

About Setco Automotive

Setco is the largest manufacturer of Premium Quality “LIPE” brand clutches for commercial vehicles in India. Incorporated in May 1982, currently the company employs more than 2000 people globally. It is a Tier I supplier of clutches to all the prominent Indian commercial vehicle manufacturers such as Tata Motors, Bharat Benz, Ashok Leyland etc. Setco has all the required global quality certifications such as TS 16949, ISO 14001, OSHAS 18001 and VDA 6.3.

 

Setco has a strategic global footprint with 4 manufacturing facilities, 2 in India, and 1 each in the UK and USA, with R&D centres in India and UK. Setco Automotive is the flagship company of The Setco Group which also includes Lava Cast Pvt Ltd, and its CSR wing, the Setco Foundation.

 

For more information, visit us at www.setcoauto.com.

 

Safe harbour

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf

 

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