NewsEarningsCraftsman Automation Reports Robust Q1 Results with 15% EBITDA Margin, Maintains FY26 GuidanceCraftsman Automation Reports Robust Q1 Results with 15% EBITDA Margin, Maintains FY26 Guidance
Craftsman Automation Limited reported robust Q1 financial results. The company's consolidated EBITDA margin was 15%, with net debt to EBITDA ratio improving to 2.27. The standalone aluminum segment saw 56% year-on-year revenue growth. The Powertrain segment's margins improved to 15.2%. Subsidiaries DR Axion, Sunbeam, and Craftsman Germany reported revenues of INR 408.00 crores, INR 291.00 crores, and INR 67.00 crores respectively. The company maintains its full-year guidance of INR 70 billion in revenue and INR 11 billion in EBITDA, with plans for INR 800.00 crores in consolidated capex.
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Craftsman Automation Limited , a leading engineering company, has reported strong financial results for the first quarter, showcasing resilience in a challenging market environment. The company maintained its full-year guidance, signaling confidence in its growth trajectory.
Key Financial Highlights
- Consolidated EBITDA margin stood at 15%
- Net debt to EBITDA ratio improved to 2.27
- Standalone aluminum segment revenue grew by 56% year-on-year
Segment Performance
Powertrain
The Powertrain segment demonstrated resilience, with margins improving to 15.2% despite industry slowdown. This improvement was attributed to optimized costs and stable operations following previous quarters' modernization and maintenance activities.
Aluminum
The aluminum segment showcased significant growth, with standalone revenue increasing by 56% year-on-year. This growth was driven by both traditional aluminum operations and the ramp-up of the alloy wheel facility in Bhiwadi.
| Segment | Revenue (INR Crores) | YoY Growth |
|---|---|---|
| Aluminum (Standalone) | 377.00 | 56% |
| Alloy Wheel | 50.00 | - |
Subsidiaries Performance
- DR Axion: Revenue of INR 408.00 crores
- Sunbeam: Revenue of INR 291.00 crores
- Craftsman Germany: Revenue of INR 67.00 crores
Strategic Developments
Sunbeam Integration: The company successfully completed the closure of Sunbeam's Gurgaon plant and equipment relocation, marking a significant milestone in its integration strategy.
Kothavadi Plant: The new facility has secured over 50% of its $100 million revenue target for 2030, with production expected to commence in FY27.
Alloy Wheel Business: The Bhiwadi plant has turned EBITDA positive, contributing approximately 13% to the standalone aluminum segment revenue.
Future Outlook
Craftsman Automation's management maintains its full-year guidance of INR 70 billion in revenue and INR 11 billion in EBITDA. The company plans a consolidated capex of INR 800.00 crores, targeting a 20-25% growth rate.
Srinivasan Ravi, Chairman and Managing Director, commented on the results, stating, "We are on track with our growth plans, and our diversified business model continues to show resilience. The improvement in our net debt to EBITDA ratio demonstrates our commitment to financial prudence while pursuing growth opportunities."
Debt Management
The company reported a consolidated net debt of INR 2,400.00 crores. Management emphasized its focus on maintaining a healthy net debt to EBITDA ratio, aiming for a comfortable range of 1.5 to 2.
Conclusion
Craftsman Automation's strong Q1 performance, particularly in the aluminum segment, underscores its robust business model. With strategic investments in new facilities and ongoing integration efforts, the company appears well-positioned to capitalize on growth opportunities in the engineering sector.
Investors will be watching closely to see if the company can maintain its growth momentum and achieve its full-year targets amidst evolving market conditions.
Historical Stock Returns for Craftsman Automation
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.21% | -1.22% | -0.79% | +33.41% | +40.25% | +388.72% |
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