Setco Automotive , a leading manufacturer of MHCV clutches and premium supplier of truck products, has announced its unaudited financial results for the first quarter. The company reported a solid performance with revenue growth and margin improvement, while also expanding its product portfolio.

Financial Highlights

• Revenue from Operations stood at Rs. 178.80 crore, up 7.8% from Rs. 165.80 crore in the same quarter last year.
• EBITDA increased by 11.9% to Rs. 21.60 crore, compared to Rs. 19.30 crore in the same quarter last year.
• EBITDA margin improved to 12.1% from 11.6% year-over-year.

Business Highlights

Setco Automotive has made significant strides in expanding its product portfolio:

1. Automotive Water Pump: The company launched an innovative Automotive Water Pump for Light Commercial Vehicles (LCVs) and MHCVs, marking its strategic expansion into the critical engine cooling segment.

2. Suspension Solutions: Setco entered the suspension solutions market for the MHCV segment with the introduction of Load Cushion and Torque Rod Bush products.

3. Tractor Segment Entry: The company has successfully entered the tractor segments, which is showing encouraging results.

Management Commentary

Harish Sheth, Chairman & MD of Setco Automotive Ltd., commented on the results: "We are pleased to start on a healthy note, with quarterly revenues of Rs. 178.80 crore, representing a 7.8% year-on-year growth, alongside an improvement in gross margins to 54%. While EBITDA for the quarter stood at Rs. 21.60 crore, a growth of 12% reflecting our focus on cost discipline and adding more products to the offerings."

Sheth added, "The traction from products launched last year, along with our entry into the tractor segments, have started yielding encouraging results. Our recent product expansion from the Automotive Water Pump to suspension products, CRB and CSB are steadily enhancing our presence across the auto component value chain."

Future Outlook

The company remains confident in its growth prospects, citing its expanding product portfolio and deeper engagement with both OEMs and aftermarket customers. The strong acceptance of Setco's technologically developed clutch variants and the initial traction in its engine cooling and suspension offerings reinforce the company's commitment to innovation, quality, and meeting evolving customer needs.

Setco Automotive's strategic expansion into new product categories and its focus on operational efficiencies position the company well for continued growth in the commercial vehicle component market.

Setco Automotive , a leading player in the automotive components sector, has announced the launch of new suspension products, marking a significant expansion of its product portfolio. The company has introduced two key components: a load cushion and a torque rod bush, both critical elements in enhancing vehicle suspension systems.

New Product Details

The newly launched products by Setco Automotive include:

1. Load Cushion: This component is designed to absorb and distribute the load in a vehicle's suspension system, potentially improving overall ride comfort.

2. Torque Rod Bush: This bushing is typically used in the suspension system to help control the movement of the axle, which can contribute to better vehicle handling and stability.

Impact on Vehicle Performance

These new suspension products are expected to play a crucial role in improving the overall ride quality and handling characteristics of vehicles. The load cushion helps in managing the weight distribution and absorbing shocks, while the torque rod bush assists in maintaining proper axle alignment and reducing vibrations.

Market Implications

By expanding its product line into these specific suspension components, Setco Automotive is positioning itself to cater to a broader range of needs in the automotive industry. This move could potentially strengthen the company's market presence and open up new opportunities in the highly competitive automotive components sector.

Looking Ahead

The introduction of these new suspension products demonstrates Setco Automotive's commitment to innovation and meeting evolving market demands. As vehicle manufacturers continue to focus on improving ride quality and performance, suppliers like Setco play a crucial role in providing the necessary components to achieve these goals.

While the long-term impact of this product launch on Setco Automotive's financial performance remains to be seen, it represents a strategic step in diversifying the company's offerings and potentially capturing a larger market share in the automotive components industry.