SJS Enterprises Limited (NSE: SJS, BSE: 543387), a leading player in the decorative aesthetics industry, has announced ambitious growth plans and reported robust financial results for the first quarter. The company aims to outpace industry growth rates significantly, driven by its focus on premium products and global expansion initiatives.

Growth Strategy and Outlook

SJS Enterprises has set its sights on achieving double the industry growth rate by FY26. This aggressive target is underpinned by several key strategies:

1. Focus on Premium Products: The company is leveraging its expertise in high-value aesthetic products to capture a larger market share in the premium segment.

2. Major OEM Contracts: SJS has secured significant contracts with original equipment manufacturers, strengthening its position in the automotive and consumer appliance sectors.

3. Global Expansion: The company is actively pursuing international markets, with a particular emphasis on expanding its presence in North America and Southeast Asia.

4. Margin Maintenance: Despite the ambitious growth plans, SJS Enterprises remains committed to maintaining its EBITDA margin guidance of over 27%.

Q1 Financial Highlights

The company's first quarter results demonstrate strong performance across key financial metrics:

Segment Performance

SJS Enterprises demonstrated strong growth across its key segments:

• Exports: Contributed 6.70% to the consolidated Q1 revenue.

Strategic Developments

The company has made significant strides in expanding its customer base and technological capabilities:

• New Customer Acquisition: SJS has added Hero MotoCorp as a marquee customer and commenced supplies to them during Q1.
• Export Expansion: The company won new business in the U.S. market from Autoliv and Fiat Chrysler Automobiles.
• Capacity Expansion: Projects are underway at Pune and Bangalore facilities to enhance manufacturing capabilities.
• Sustainability Initiatives: SJS received the Green Manufacturing Excellence Award (GMEA) from Futurescaper and the Good Manufacturing Practice (GMP) certification from TUV.

Management Commentary

K. A. Joseph, Managing Director of SJS Enterprises, commented on the results: "We began the fiscal year on a positive note, with Q1 reflecting strong demand across key vehicle segments, despite lower industry growth. We delivered our 23rd consecutive quarter of outperformance, an achievement that highlights our strong commitment to innovation and execution."

Sanjay Thapar, Executive Director & Group CEO, added: "Despite lower industry growth, SJS not only delivered strong revenue growth but also achieved robust profitability margins, with EBITDA margins at 27.60% and PAT margins at 16.50%. We are confident that in the long run, we will be one of the preferred suppliers with a significant share of business in our target markets."

SJS Enterprises' strong Q1 performance and ambitious growth targets underscore its position as a key player in the decorative aesthetics industry. With its focus on premium products, global expansion, and technological innovation, the company appears well-positioned to capitalize on growth opportunities in the automotive and consumer appliance sectors.

SJS Enterprises Limited (NSE: SJS, BSE: 543387), a leading manufacturer of self-adhesive labels and automotive products, has announced its unaudited financial results for the first quarter, showcasing strong growth and improved profitability.

Financial Highlights

• Consolidated revenue from operations increased by 11.15% to ₹2,096.58 crore, up from ₹1,886.24 crore in the previous quarter.
• Consolidated profit after tax (PAT) rose by 2.61% to ₹346.16 crore, compared to ₹337.34 crore in the preceding quarter.
• On a standalone basis, revenue grew by 20.32% to ₹1,237.22 crore from ₹1,028.26 crore.
• Standalone net profit increased by 11.23% to ₹273.13 crore from ₹245.56 crore.

Operational Performance

The company's strong performance can be attributed to its robust product portfolio and strategic focus on the automotive, electronics, and appliances industries. SJS Enterprises continues to manufacture and sell self-adhesive labels, automotive dials, overlays, badges, and logos, catering to the growing demand in these sectors.

Employee Stock Option Plan

During the quarter, the Board of Directors approved the allotment of 24,250 equity shares under the SJS Enterprises - Employee Stock Option Plan 2021. This allotment has increased the company's paid-up equity share capital from ₹313,331,540 to ₹313,574,040, consisting of 31,357,404 equity shares with a face value of ₹10 each.

Subsidiary Developments

SJS Enterprises' subsidiaries, SDPL and WPI, have entered into Solar Power Purchase Agreements with Amplus Energy Solutions Pte Ltd and Amplus Kaveri Solar Private Limited. This move towards renewable energy sources demonstrates the company's commitment to sustainability:

• SDPL will receive up to 2.25 MWp of solar power and has invested ₹81 lakh for a 0.955% stake in AKSPL.
• WPI will receive up to 2.40 MWp of solar power and has invested ₹86.40 lakh for a 1.019% stake in AKSPL.

Additionally, Walter Pack Automotive Products India Private Limited and its wholly-owned subsidiary, Plastoranger Advanced Technologies Private Limited, have approved a merger under Section 233 of the Companies Act, 2013.

Management Commentary

K. A. Joseph, Managing Director of SJS Enterprises Limited, commented on the results, saying, "We are pleased with our strong start to the fiscal year. The double-digit growth in both our consolidated and standalone revenues reflects the robust demand for our products and our ability to execute effectively. Our focus on operational efficiency has also contributed to the improvement in our profitability."

He added, "The investments in solar power by our subsidiaries align with our commitment to sustainable practices, which we believe will not only benefit the environment but also contribute to long-term cost efficiencies."

SJS Enterprises Limited continues to demonstrate its resilience and growth potential in the automotive and consumer electronics sectors. With a strong order book and strategic initiatives in place, the company is well-positioned to capitalize on the growing demand for its products in the coming quarters.

Note: All figures are in Indian Rupees (INR) and have been rounded to the nearest decimal place where applicable.