Q1 2025 Sterling Tools Ltd Earnings Call Transcript
Key Points
- Sterling Tools Ltd (BOM:530759) reported a 9.6% year-over-year increase in total income from standalone business, reaching INR162.9 crores.
- EBITDA increased by 14.5% year-over-year, with margins improving from 14.1% to 14.8%.
- Profit after tax surged by 41% year-over-year, reaching INR11.4 crores.
- The company's SGEM segment saw a significant revenue growth of 62% year-over-year, increasing its share in the overall business from 33% to 43%.
- Sterling Tools Ltd (BOM:530759) has added new customers in the three-wheeler and LCV space, as well as in the entry-level electric scooter space, indicating potential future revenue growth.
- The demand for automobiles was muted during Q1 FY25, which could impact future revenue growth.
- The LCV category's contribution to overall revenue remains small, and its growth is dependent on government policy announcements.
- High customer concentration remains a concern, with the top five customers contributing over 90% of SGEM revenue.
- The company has not made any price hikes in the fastener business, relying solely on volume growth.
- Capacity utilization at the Bangalore plant is currently at 45-50%, indicating underutilization and the need for further balancing CapEx.
Ladies and gentlemen, good day, and welcome to Sterling Tools Limited Q1 FY25 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Pankaj Gupta, Group CFO. Thank you, and over to you, sir.
Thank you. Good morning, everyone. On behalf of STL Group, I extend our very warm welcome to our quarter one FY25 earnings call. Today, I'm joined on this call by Mr. Atul Aggarwal our Managing Director; Mr. Jaideep Wadhwa, Director; Mr. Anish Agarwal, Director; and our Advisors, Investor Relations, SGA Partners. We uploaded our results presentation on the exchanges, and I hope everyone has had a chance to have a
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