Saint-Gobain Sekurit India Receives ₹24.26 Crore GST Demand Order

Saint Gobain Sekurit India Limited, a prominent player in the automotive glass sector, has recently received a significant tax demand order from the Department of Goods and Service Tax (GST) in Pune. The order, which pertains to Merchant Export matters for the fiscal year 2021-22, calls for the payment of tax, interest, and penalties totaling ₹24.26 crore (₹2,426.01 lakhs).

Order Details

The company disclosed this development in a regulatory filing, providing key details about the order:

Aspect	Details
Issuing Authority	Department of Goods and Service Tax, Pune
Nature of Order	Payment of tax, interest, and penalty
Amount Demanded	₹24.26 crore (₹2,426.01 lakhs)
Fiscal Year Concerned	2021-22
Subject Matter	Merchant Export

Company's Response

Saint Gobain Sekurit India has stated that it is currently evaluating all available options in response to this order. The company's management is considering filing an appeal against the demand, indicating that they may contest the tax department's assessment.

Financial Impact

Despite the substantial amount involved, the company has asserted that this order does not have a material impact on its financial, operational, or other activities. This statement suggests that Saint Gobain Sekurit India is confident in its financial position and its ability to address this tax issue without significant disruption to its business operations.

Investor Implications

While the company maintains that there is no material impact, investors and stakeholders should keep a close watch on how this situation develops. The outcome of any potential appeal or negotiation with the tax authorities could have implications for the company's financial statements in the coming quarters.

It's important to note that such tax disputes are not uncommon in the Indian corporate landscape, and companies often contest such orders through various legal and administrative channels. The final financial impact, if any, will likely depend on the resolution of this matter through the appropriate legal or regulatory processes.

Saint Gobain Sekurit India's transparent disclosure of this order aligns with regulatory requirements and good corporate governance practices, keeping shareholders informed about significant developments that could potentially affect the company's financial position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.04%	-0.76%	-1.50%	-1.72%	-7.71%	+94.16%

Saint-Gobain Sekurit India , a leading player in the automotive glass sector, has announced its unaudited financial results for the quarter and half-year ended September 30. The Board of Directors approved these results at a meeting held on October 31.

Financial Highlights

Metric	Q2 FY2025	Q2 FY2024	YoY Change
Revenue	604.00	516.00	+17.1%
EBITDA	127.00	86.70	+46.5%
EBITDA Margin	21.00%	16.80%	+420 bps
Net Profit	108.00	83.00	+30.1%

For the half-year period, Saint-Gobain Sekurit India reported total revenue from operations of ₹5,162.28 crore, with a profit before tax of ₹2,858.30 crore.

Quarterly Performance

The company delivered a robust performance in the second quarter, with revenue climbing to ₹604.00 crore, marking a 17.1% increase from the same period last year. This growth in revenue suggests strong demand for the company's automotive glass products.

Profitability Boost

The company's profitability metrics have shown remarkable improvement. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged by 46.5% year-over-year to ₹127.00 crore. This substantial increase in EBITDA outpaced revenue growth, indicating enhanced operational efficiency and cost management.

The EBITDA margin expanded significantly from 16.80% in Q2 of the previous fiscal year to 21.00% in the current quarter, representing a 420 basis points improvement. This margin expansion reflects the company's ability to manage costs effectively while growing its top line.

Net profit for the quarter rose to ₹108.00 crore, up from ₹83.00 crore in the corresponding quarter of the previous year, representing a 30.1% increase. This growth in bottom-line performance underscores the company's ability to translate revenue growth into higher profitability.

Balance Sheet and Cash Flow

As of September 30, the company's total assets stood at ₹26,475.45 crore, compared to ₹25,280.97 crore as of March 31. Cash and cash equivalents decreased to ₹333.89 crore from ₹499.12 crore. The company paid dividends of ₹1,807.30 crore during the half-year period.

Market Implications

The strong quarterly results may positively impact investor sentiment towards Saint-Gobain Sekurit India. The company's ability to expand margins demonstrates its operational resilience and may be viewed favorably by market participants.

Saint-Gobain Sekurit India's performance in Q2 reflects its strong position in the automotive glass market. The company's ability to grow revenue and significantly improve profitability metrics may indicate positive trends in the automotive sector and effective execution of its business strategies.

Deloitte Haskins & Sells LLP conducted the limited review of the financial statements, ensuring compliance with Indian Accounting Standards and relevant regulations set by the Securities and Exchange Board of India (SEBI).