Sharda Motor , a leading auto component manufacturer specializing in emission control and suspension systems, has reported a strong financial performance for the first quarter.

Financial Highlights

The company's revenue for Q1 stood at ₹756.2 crores, marking a 10% year-over-year growth. Profit after tax (PAT) surged to ₹99.9 crores from ₹76.8 crores in the previous year, boosted by an exceptional gain of ₹22.4 crores from the sale of an idle industrial land parcel in Haridwar, Uttarakhand.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 3% to ₹98.4 crores, with a margin of 13.00%. The company's gross profit, considered a better indicator of growth performance, increased by 5% to ₹189.5 crores.

Operational Highlights

Sharda Motor Industries has commenced operations at its new suspension plant, further strengthening its manufacturing capabilities. The company is currently operating at an 80% capacity utilization across its facilities.

In a significant move to bolster its leadership team, the company appointed Ashwani Maheshwari as Deputy Managing Director. This strategic hire is expected to drive the execution of various growth initiatives.

Innovation and Expansion

The company continues to focus on innovation, having filed two new patents during the quarter. This brings the total number of patents filed by Sharda Motor Industries to 15, underscoring its commitment to technological advancement in the auto component sector.

On the business development front, Sharda Motor Industries has successfully added two new export customers - a leading Japanese construction equipment company and a heavy industry machinery company. These new relationships, although starting with smaller pilot orders, are expected to begin production within 12 to 18 months.

Strategic Focus

The management is actively exploring M&A opportunities in powertrain agnostic areas while concentrating on light-weighting technologies. The company is also expanding its export footprint, particularly in the US and European markets.

Aashim Relan, Group CEO of Sharda Motor Industries, commented on the results, stating, "Our focus on innovation and expansion into new markets is yielding positive results. The addition of new export customers and our continued investment in light-weighting technologies position us well for future growth."

Industry Outlook

The Indian automotive industry showed steady performance across various segments in Q1. Passenger vehicle production reached 12.44 lakh units, while the tractor segment stood out with a strong 12.7% year-over-year growth, reaching 2.94 lakh units.

Looking ahead, Sharda Motor Industries remains cautiously optimistic about the industry's growth prospects, driven by stable macroeconomic conditions, improved vehicle financing, and sustained export momentum. However, the company remains alert to global economic and geopolitical uncertainties that could impact the sector.

As Sharda Motor Industries continues to navigate the evolving automotive landscape, its focus on innovation, strategic expansion, and operational efficiency is expected to drive sustainable growth in the coming quarters.

Sharda Motor Industries Limited (SMIL), a leading automotive component manufacturer, has reported a strong performance for the first quarter. The company's unaudited financial results reveal significant growth across key financial metrics.

Revenue Growth

SMIL's revenue from operations for Q1 stood at ₹756.20 crores, marking a 10% year-over-year increase from ₹685.40 crores in the same quarter of the previous year. This growth underscores the company's robust market position and increasing demand for its products.

Profitability Metrics

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 3% to ₹98.40 crores, compared to ₹95.70 crores in the same quarter of the previous year. This modest growth in EBITDA indicates the company's ability to maintain operational efficiency despite challenging market conditions.

Notably, SMIL's Profit After Tax (PAT) saw a substantial increase of 30%, reaching ₹99.90 crores, up from ₹76.80 crores in the same period last year. This significant jump in profitability reflects the company's effective cost management and improved operational performance.

Business Verticals and Market Position

Sharda Motor Industries operates through three primary business verticals:

1. Emission Control
2. Lightweighting
3. Global Business

The company has established a strong market presence, holding approximately 30% value market share in passenger vehicle and light commercial vehicle exhaust systems. Additionally, SMIL commands a 12.5% market share in control arms, highlighting its growing influence in the lightweighting segment.

Manufacturing Capabilities

SMIL's operations are supported by eight manufacturing facilities strategically located across India, including Chennai, Pune, Nashik, and Sanand. This extensive manufacturing network enables the company to efficiently serve its diverse customer base and maintain its competitive edge in the automotive component industry.

Innovation and Research

The company's commitment to innovation is evident from its research and development efforts. SMIL has filed 15 patents over the last three years, with 3 patents already granted. This focus on innovation positions the company well for future growth and technological advancements in the automotive sector.

Workforce and Expertise

With over 1,000 employees, Sharda Motor Industries has a strong workforce driving its operations and innovation. The company's expertise spans across various automotive components, including emission control systems, suspension assemblies, and lightweighting solutions.

Outlook

The strong financial performance in Q1, coupled with SMIL's diverse product portfolio and focus on innovation, positions the company favorably in the competitive automotive component market. As the automotive industry continues to evolve, particularly with the emphasis on emission control and lightweighting, Sharda Motor Industries appears well-equipped to capitalize on emerging opportunities and maintain its growth trajectory.