Craftsman Automation Limited , a leading diversified engineering company, has released its financial results for the first quarter, showcasing significant growth in revenue despite facing margin pressures.

Strong Revenue Growth

The company reported a consolidated revenue of ₹1,784.00 crore for Q1, marking a substantial 55% year-over-year increase from ₹1,151.00 crore in the same quarter of the previous year. This impressive growth demonstrates Craftsman Automation's strong market position and expanding operations.

Earnings Performance

Despite the robust revenue growth, Craftsman Automation experienced a decline in its profit margins. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin dropped from 20-21% to approximately 14% due to changes in product mix and growth in the aluminum business with pass-through pricing.

Net profit for Q1 stood at ₹70.00 crore, showing a 19% increase from ₹59.00 crore in the same quarter last year. However, the net profit margin remained stable at 4%.

Segment-wise Performance

Craftsman Automation's business is divided into three main segments:

1. Aluminum Products: This segment emerged as the largest contributor, accounting for 60% of the total revenue in Q1. It reported a revenue of ₹1,071.00 crore, more than doubling from ₹528.00 crore in the same quarter of the previous year.

2. Powertrain: Contributing 28% to the total revenue, this segment grew by 19% year-over-year, reaching ₹496.00 crore in Q1.

3. Industrial and Engineering: This segment, which includes storage solutions, accounted for 12% of the revenue, with a modest 5% growth to ₹216.00 crore.

Future Outlook and Expansion Plans

Craftsman Automation has outlined ambitious growth plans for the coming years:

• The company is projecting a consolidated capital expenditure of ₹800.00 crore for the current fiscal year.
• It aims to achieve a 20-25% growth rate overall.
• In the aluminum segment, Craftsman Automation expects a 20-25% CAGR over the next four years.
• The company maintains its full-year revenue target at ₹7,000.00 crore, with an EBITDA target of ₹1,100.00 crore and EBIT between ₹650.00-700.00 crore.
• The storage business is expected to achieve 15% revenue growth with EBITDA margins close to 4%.

Expansion and Acquisitions

Craftsman Automation has been actively expanding its operations:

• The company recently acquired 100% of DR Axion India and Sunbeam Lightweighting Solutions Pvt. Ltd.
• It has also acquired Craftsman Fronberg Guss GmbH in Germany, expanding its international presence.
• A new greenfield facility is under construction in Hosur, India, which will further enhance the company's manufacturing capabilities.

With its strong financial performance and strategic expansion plans, Craftsman Automation appears well-positioned to capitalize on growth opportunities in the engineering and automotive sectors, despite facing some margin pressures in the short term.

Note: All financial figures are in Indian Rupees (₹) and 1 crore equals 10 million.

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.