Consumer Durables News

SJS DELIVERS STRONG PERFORMANCE IN Q2FY23 17.3% YoY growth in Revenue and 30.7% YoY growth in PAT


L-R: Mr. Sanjay Thapar, Executive Director & CEO, SJS Enterprises Limited and MR. K. A. Joseph, Managing Director, SJS Enterprises Limited During the Company Q2FY23 and H1FY23 Results Announcement at BSE Today November 2022/ Mumbai – GPN

SJS Enterprises Limited Q2FY23 (Consolidated) 

  • Revenue at ₹ 1,169.4 Mn, robust growth of 17.3% YoY
  • EBITDA grew 24.5% YoY to ₹ 333.8 Mn, Strong margin at 28.0%
  • Net Profit jumps 30.7% YoY to ₹ 199.5 Mn, margins improved to 17.1%
  • Strong Cash & cash equivalents position of ~Rs 1,295.1 Mn; Debt free company
  • Added new customers – Skoda Auto Volkswagon India in automotive industry, Atomberg Technologies, in domestic appliances and entered the FMCG premium segment with John Distilleries
  • Continued growing business with mega accounts by winning new orders from TVS Motors, Bajaj Auto, Royal Enfield, M&M and Whirlpool
  • Futuristic technology products – illuminated logos launched and automotive display cover glass under development

SJS Enterprises Limited H1FY23 (Consolidated)

  • Consistently maintaining ~25% growth, outpacing the industry
  • Revenue at ₹2,201.1 Mn, robust growth of 26.5% YoY
  • EBITDA at ₹ 612.0 Mn, a sturdy growth of 34.8% YoY, strong margin at 27.2%,
  • Net Profit rises to ₹361.6 Mn, a strong jump of 46.0% YoY, with a margin of 16.4%

MUMBAI, BENGALURU, NOVEMBER 11, 2022 (GPN): The Board of Directors at SJS Enterprises Limited (BSE: 543387; NSE: SJS), one of India’s leading players in the decorative aesthetics industry, today approved the audited financial results for the quarter and half year ended September 30, 2022, for fiscal year 2022-23. The Company delivered a strong and robust performance, outpacing the industry, despite the slowdown in exports and consumer durables industry, impacted by the ongoing Ukraine – Russia war and macro-economic headwinds.

Automotive decorative applique player SJS Enterprises has reported consolidated revenues of INR 116.94 crore in Q2FY23 with a YoY growth rate of 17.3%. The net profits of the company grew by 17.1% YoY to INR 19.95 crore.

The company announced that during Q2FY23, it added Skoda Auto and VW India for 3D lux parts and worked with EV manufacturers to fulfil the EV company’s demands and requirements. Besides several projects from Royal Enfield, TVS, Honda, Mahindra and Bajaj were also won in the said quarter.

Meanwhile, the company’s EBITDA was at INR 33.38 crore, representing a 24.5% YoY growth on the back of higher sales, softening commodity prices and operational efficiencies with strong margins of 28%.

Financial Highlights (Consolidated)

For the quarter under review, the Company has posted Consolidated Revenue at ₹ 1,169.4 Mn a robust growth of 17.3% YoY, on back of 30.3% YoY growth in its automotive revenue segment, surpassing 2W and PV industry production combined growth of 12.1% YoY. EBITDA grew on the back of higher sales, softening of raw material prices and operational efficiencies to ₹ 333.8 Mn, a YoY growth of 24.5%. EBITDA Margin remained strong at 28.0%, expanding by 134 bps YoY. Net Profit (PAT) for Q2FY23 jumped 30.7% YoY to ₹ 199.5 Mn on a Margin of 17.1%, an improvement of 175 bps.  Domestic sales clocked 22.9% YoY growth, on back of 35.4% and 31.1% YoY growth in 2W and PV,  respectively Despite the impact on exports, SJS maintained its sales momentum in Q2FY23.

The company continued its growth momentum by adding marquee customers like Skoda Auto Volkswagon India – for decals and 3D lux parts and Atomberg Technologies, a leading manufacturer of premium fans for domestic appliances in Indian market – for IML parts. SJS entered the FMCG premium segment with the addition of John Distilleries – for speciality decals. With the addition of BuymyEV and TI India, SJS now supplies to 12 customers in the EV space. The Company also won new orders from mega accounts like TVS Motors, Bajaj Auto, Royal Enfield, M&M and Whirlpool among others. The Company is proactively developing futuristic products such as Illuminated logos, Cover glass for automotive displays etc to remain ahead of the technology curve.

For the half-year ended Sept 30, 2022, SJS Enterprises delivered on its said guidance of 25% YoY growth, outpacing the industry growth. The company clocked revenues of ₹ 2,201.1 Mn, growing at 26.5% YoY.  SJS surpassed 2W and PV industry productions combined growth of 22.5% YoY with 38.9% YoY growth in automotive segment. Healthy operating EBITDA of ₹ 612.0 Mn, a robust growth of 34.8% YoY and strong margins of 27.2%. Net Profit (PAT) for H1FY23 rose significantly by 46.0% YoY to ₹ 361.6 Mn, with a margin of 16.4%.

Commenting on Company’s performance, MR. K. A. Joseph, Managing Director, SJS Enterprises Limited, said, “We are delighted with our Q2FY23 performance. We remained prudently positive and have been able to outperform the industry. This growth is on account of strong customer relationships and our customers derive immense value from our continued focus on quality and delivery excellence. The 8 awards won by SJS during the quarter is a testament to the same. I am confident that going forward we will be able to further strengthen our customer relationships, develop new generation products, expand our reach and achieve our guided financial growth”.

“It has been another good quarter. We are extremely positive on growth prospects for our business, given the improved outlook for the automotive industry, premiumisation trends and positive customer response to Futuristic technology development initiatives at SJS. Despite near term geo-political challenges in global markets, we remain cautiously optimistic on exports. However, we are confident of achieving ~25% revenue growth CAGR in the next couple of years, while maintaining best-in-class margins. Driving value through new products will be one of the key drivers for future growth. We are already working with OEMs for futuristic products like Illuminated logos and cover glass technology for automotive centre stack displays etc.  We are also gearing up for the future with advanced technology products like IME and smart surface technologies which will enable a high growth trajectory for the Company, “added Mr. Sanjay Thapar, Executive Director & CEO, SJS Enterprises Limited.

About SJS Enterprises 

SJS Enterprises Limited (https://www.sjsindia.com) is one of the leading players in Indian decorative aesthetics industry, which has one of the widest range of products with presence across traditional and premium products. The Company deals in 11 product categories like decals, logos – domes & 3D lux, aluminium badges, 2D & 3D appliques, chrome plated parts, overlays, In-moulding Decoratives/ Labeling, optical plastics, and lens mask assembly. These products primarily serve two wheelers (2W), passenger vehicles (PV) and large consumer durables (CD) industries along with commercial vehicles, medical devices, farm equipment’s and sanitary ware segments. SJS has strong manufacturing footprint with 2 facilities in Bengaluru and Pune, and global distribution capabilities exporting to 20+ countries.Ends

https://www.sjsindia.com/Docs/FY2223/Q1/Press%20Release.pdf

Results sheet link shared with the stock exchanges: https://www.bseindia.com/xml-data/corpfiling/AttachLive/a80dc672-9a85-4b97-b3d8-f6daeb9d867a.pdf



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