Craftsman Automation Limited , a leading engineering company, has reported a robust financial performance for the first quarter of the fiscal year. The company's consolidated net profit jumped 31% year-over-year to ₹696 million, up from ₹532 million in the same period last year.

Strong Revenue Growth

The company witnessed a significant surge in its revenue, which grew by 55% to reach ₹17.8 billion, compared to ₹11.5 billion in the corresponding quarter of the previous year. This substantial increase in revenue highlights Craftsman Automation's strong market position and growing demand for its products and services.

EBITDA Performance

Craftsman Automation's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a notable improvement, increasing to ₹2.65 billion from ₹1.97 billion in the year-ago period. However, the EBITDA margin experienced a slight decline, dropping to 14.85% from 17.14% in the previous year.

Segment-wise Performance

The company's financial results, as disclosed in its regulatory filing, reveal strong performance across its business segments:

Management's Approval

The Board of Directors of Craftsman Automation Limited approved these unaudited standalone and consolidated financial results for the quarter ended June 30, at their meeting held on July 29. The results were reviewed by the statutory auditors, who issued an unmodified review conclusion.

Financial Position

As of June 30, Craftsman Automation's consolidated total assets stood at ₹76,274.20 crore, while total liabilities were reported at ₹46,826.70 crore.

Conclusion

The company's strong quarterly performance, marked by significant revenue growth and improved profitability, indicates its resilience and ability to capitalize on market opportunities. However, the slight decline in EBITDA margin suggests that the company may be facing some cost pressures, which will be an area to watch in the coming quarters.

Note: All figures are based on the consolidated financial results provided in the company's regulatory filing.

Craftsman Automation Limited , a prominent player in the automotive component manufacturing sector, has made strategic investments in two solar power companies as part of its commitment to sustainable energy practices. The company announced equity investments in Mastertex Export Private Limited (MEPL) and Tara Green Power Private Limited (TGPPL) to comply with the Group Captive Scheme requirements under the Electricity Act, 2003.

Investment Details

Craftsman Automation has invested a total of Rs. 2.82 lakh in the two companies:

Both investments were completed through cash consideration.

Company Profiles

Mastertex Export Private Limited (MEPL)

• Incorporated: October 11, 2023
• Registered Office: Tiruppur, Tamil Nadu
• Business: Solar power generation and transmission
• Current Status: Yet to commence operations
• Authorized and Paid-up Capital: Rs. 10.00 lakh

Tara Green Power Private Limited (TGPPL)

• Incorporated: May 12, 2023
• Registered Office: Erode, Tamil Nadu
• Business: Power generation and transmission
• Turnover: Rs. 119.97 lakh
• Authorized Capital: Rs. 55.00 lakh
• Paid-up Capital: Rs. 40.00 lakh

Regulatory Compliance and Transparency

Craftsman Automation has confirmed that these investments do not fall under related party transactions. The company also stated that no promoters or group companies have any interest in either MEPL or TGPPL.

The investments align with Craftsman Automation's strategy to secure sustainable power sources and comply with regulatory requirements. By participating in the Group Captive Scheme, the company is positioning itself to benefit from solar power generation while fulfilling its obligations under the Electricity Act, 2003.

These strategic moves demonstrate Craftsman Automation's commitment to sustainable practices and long-term energy security, which could potentially lead to cost savings and environmental benefits in the future.