Shanthi Gears Limited (SGL), a subsidiary of Tube Investments of India Limited, has reported a mixed set of financial results for the quarter ended June 30, showcasing resilience in profitability despite a slight decline in revenue.

Financial Performance

The company recorded revenue of ₹134.89 crores, compared to ₹138.82 crores in the same quarter last year, marking a slight decrease. However, profitability showed improvement:

• Profit Before Tax (PBT) increased by 6% to ₹30.62 crores from ₹28.95 crores in the previous year's corresponding quarter.
• Profit After Tax (PAT) grew by 5% year-over-year.

Shanthi Gears demonstrated strong operational efficiency:

• Achieved a Return on Invested Capital (ROIC) of 49%.
• Generated free cash flow of ₹26.10 crores, up 24% year-over-year.

Key Highlights

• New orders worth ₹145.00 crores were booked during the quarter.
• Unexecuted order book stood at ₹249.00 crores as of June 30.

Management Changes

In a significant board-level change, Shanthi Gears announced the following:

• Ms. Soundara Kumar completed her tenure as Non-Executive & Independent Director after serving two consecutive five-year terms.
• Ms. Aruna Thangaraj was appointed as Additional Director and Independent Director for a five-year term from July 30 to July 29, 2030, subject to shareholder approval.
• Ms. Thangaraj is the Managing Director of AGT Electronics Limited and holds engineering qualifications from REC Trichy and universities in the US.

Outlook

While the company faced a slight dip in revenue, the improved profitability and strong order book suggest a positive outlook. Shanthi Gears continues to focus on key financial metrics:

1. Revenue
2. Profitability
3. Return on Invested Capital (ROIC)
4. Free Cash Flow (FCF)

The company's ability to improve profitability and cash flow generation in a challenging environment demonstrates its operational resilience and effective management strategies. With a robust order book and strategic focus on key financial metrics, Shanthi Gears appears well-positioned to navigate the current market conditions.

Investors and stakeholders will be watching closely to see if the company can maintain this momentum and potentially return to revenue growth in the coming quarters while continuing to improve its bottom line.

Shanthi Gears , a leading player in the industrial gear manufacturing sector, has reported a mixed financial performance for the fourth quarter and full fiscal year 2023-24. The company's quarterly results show a decline in profitability, while the annual figures paint a picture of robust growth.

Q4 Performance: A Slight Setback

Shanthi Gears reported a net profit of ₹22.50 crore for the fourth quarter of FY 2023-24, down from ₹25.70 crore in the same period last year. This represents a year-over-year decrease in quarterly profits, indicating some challenges in the final stretch of the fiscal year.

Annual Financial Highlights: A Year of Growth

Despite the Q4 dip, Shanthi Gears' full-year performance for FY 2023-24 shows significant improvement across key financial metrics:

Revenue and Profitability

The company's annual revenue surged to ₹557.10 crore, marking a robust 21.93% increase from the previous year. This growth was accompanied by a proportional rise in profitability, with net profit climbing to ₹82.30 crore, up 22.65% year-over-year.

Operational Efficiency

Shanthi Gears maintained strong operational performance throughout the year:

• Operating Profit Margin (OPM) stood at 18.99% for FY 2023-24.
• EBITDA grew by 21.46% to ₹122.80 crore, indicating improved operational efficiency.

Sales Performance

Sales for the fiscal year reached ₹536.00 crore, a significant 20.29% increase from the previous year, reflecting strong market demand for the company's products.

Looking Ahead

While the Q4 results show a temporary decline in profitability, the overall annual performance of Shanthi Gears demonstrates the company's resilience and growth potential in the industrial gear manufacturing sector. Investors and stakeholders will be keen to see how the company addresses the challenges that led to the Q4 dip and builds on its strong annual performance in the coming fiscal year.

Note: All financial figures are reported in Indian Rupees (₹) and crore units as per the company's financial statements.