Sterling Tools Limited (BSE: 530759) (NSE: STERTOOLS) is the 2nd largest Automotive Fastener Manufacturer in the country and its 100% owned subsidiary Sterling Gtake E-Mobility Ltd., is the largest MCU supplier to the EV industry in India. The Company announced its unaudited Standalone and Consolidated results for the quarter and half year ended 30th September 2023.
Key Standalone Financial Highlights:
- As per SIAM, the Automobile Industry production has grown by ~1% YoY for the period of April-September. STL has outperformed the industry, growing by 3.7% YoY in H1FY24
- Low revenue growth led to lower absorption of manufacturing expenses as well as (increased) employee costs
Commenting on the Q1FY24 performance, Mr. Atul Aggarwal, Whole Time Director of Sterling Tools Limited stated: “The consolidated revenues grew by 22.8% from Rs 353.8 crore in H1FY23 to Rs. 434.4 crore in H1FY24. The EBITDA has also witnessed a growth of 12.6% to Rs 54.4 crore during the first half of the fiscal year. Our Sterling Gtake E-Mobility (SGEM) subsidiary contributed 30% of consolidated revenue in H1 FY24 vs 17% in H1 FY23, an indication of how well this new business has performed for us.
On a standalone basis, the topline grew by 3.7% to Rs. 304.0 crores. For the same period, the production data for the overall auto industry reflects 1% YoY growth. Within the end-user product sub segments we have either outpaced or been in line with the industry performance.
The Company is introducing STL ESOP plan 2023 wherein the Company shall grant ESOP, subject to regulatory approvals. The ESOP Plan is being introduced with a view to provide employees, of the Company and its subsidiaries, with additional incentives based on productivity and performance and thereby motivating them to contribute further to the corporate growth and profitability.
Going ahead, our focus will be to increase capacity utilization thereby enabling the company to achieve operating leverage. We are currently working on a three-pronged strategy of customer acquisition, higher content per vehicle and new product development.”