Sterling Tools reports consolidated top-line growth of 27.3% YoY in Q1 FY25

Sterling Tools Limited (STL) (BSE: 530759) (NSE: STERTOOLS), is the second largest automotive fastener manufacturer in the country and it's 100% owned subsidiary-Sterling Gtake E-Mobility Limited is the largest Motor Control Unit (MCU) manufacturer for the Electric Vehicle (EV) industry in India. The Company announced its unaudited Standalone and Consolidated results for the quarter ended 30th June 2024.

Key Consolidated Financial Highlights for Q1 FY25 are as following:

- Total income grew by 27.3% YoY to Rs. 283.7 crore in Q1 FY25 as against Rs. 222.8 crore in Q1 FY24

- Adjusted EBITDA (excl. ESOP expense) increased by 33.9% YoY to Rs. 37.1 crore as compared to Rs. 27.7 crore in Q1 FY24

- Adjusted EBITDA margin stood at 13.1% in Q1 FY25 as against 12.4% in Q1 FY24

- Profit after tax witnessed a growth of 40.9% YoY to Rs. 18.4 crore in Q1 FY25 compared to Rs. 13.1 crore in Q1 FY24

- Profit after tax margin stood at 6.5% in Q1 FY25

Key Standalone Financial Highlights for Q1 FY25 are as following:

- Total income grew by 9.6% YoY to Rs. 162.9 crore in Q1 FY25 as against Rs. 148.6 crore in Q1 FY24

- EBITDA increased by 14.5% YoY to Rs. 24.1 crore as compared to Rs. 21.0 crore in Q1 FY24

- EBITDA margin stood at 14.8% in Q1 FY25 as against 14.1% in Q1 FY24

- Profit after tax witnessed a growth of 41.0% YoY to Rs. 11.4 crore in Q1 FY25 as compared to Rs. 8.1 crore in Q1 FY24

- Profit after tax margin increased by 160 bps YoY to 7.0% in Q1 FY25 as against 5.4% in Q1 FY24

Commenting on the Q1 FY25 performance, Mr. Atul Aggarwal, Managing Director of Sterling Tools Limited stated: "Total Income from our standalone business grew by 9.6% to Rs 162.9 crore on a YoY basis. The EBITDA has increased by 14.5% YoY and margins improved to 14.8% in Q1 FY25 from 14.1% in Q1 FY24. PAT surged by 41.0%, on a YoY basis, to Rs 11.4 crore. The company is focused on achieving higher revenue growth and it is well positioned to capture incremental market share going forward.

SGEM continues to gain traction with total income witnessing a growth of 62.7% on a YoY basis. The revenue share of SGEM in the overall business has risen from 33% in Q1 FY24 to 43% in Q1 FY25. We are working to add to our EV product portfolio and continue to focus on customer diversification too.

On the industry front, the demand for automobiles was a bit muted during Q1 FY25. The EV 2-wheeler industry continues to gain momentum and the cumulative sales stood at 1,82,050 units in Q1 FY25. Hybrid PVs are getting more attention from OEs which aligns well with our EV focus."

Shares of Sterling Tools Limited was last trading in BSE at Rs. 404.55 as compared to the previous close of Rs. 408.55. The total number of shares traded during the day was 94104 in over 4335 trades.

The stock hit an intraday high of Rs. 424.70 and intraday low of 396.75. The net turnover during the day was Rs. 38385970.00.

Source : Equity Bulls

Keywords

SterlingTools INE334A01023 Q1FY25 Q1FY2025 FY2025 ResultUpdate