Subros Limited , India's largest automotive air-conditioning and thermal products manufacturer, has reported robust financial results for the first quarter, while simultaneously positioning itself for leadership across multiple thermal segments.

Financial Highlights

For Q1, Subros reported:

• Revenue from operations of Rs. 878.25 crore, an 8.45% increase year-over-year
• EBITDA of Rs. 87.70 crore, up 9.05% from the same quarter last year
• Profit Before Tax (PBT) of Rs. 54.44 crore, a significant 15.43% rise
• Profit After Tax (PAT) of Rs. 40.66 crore, showing a strong 16.48% growth

Operational Performance

The company's growth was driven by increased volumes and the start of production (SOP) for new projects, including its Railways business. Subros also reported improvements in material costs due to cost optimization initiatives, although this was partially offset by higher employee costs resulting from annual salary revisions.

Strategic Expansion

Subros is actively diversifying its business portfolio, targeting leadership positions in multiple thermal segments. Key focus areas include:

1. Electric Vehicles (EV): The company has ongoing development activities for new EV business awarded in 2022-23.
2. Railways: Expansion into the railway segment has contributed to revenue growth.
3. Commercial Vehicles: Subros started production of truck air conditioning systems in Q1.

Future Outlook

Subros is aligning its growth strategy with industry trends across all segments. The company plans to:

• Expand its presence in the Commercial Vehicle (CV) segment, including buses, railways, and trucks.
• Capitalize on opportunities in green mobility, including EVs, Strong Hybrid Electric Vehicles (SHEV), and CNG vehicles.
• Upgrade technology to meet regulatory changes such as BSVI, RDE, and CAFÉ norms.
• Focus on cost optimization through improved operational efficiencies.
• Develop human skills and organizational structure to meet future requirements.
• Pursue ESG goals for future sustainability and social requirements.

Management Commentary

Ms. Shradha Suri, Chairperson and Managing Director of Subros, stated, "Our Q1 performance demonstrates Subros' resilience and strategic foresight. We are successfully diversifying our portfolio while maintaining strong growth in our core automotive AC business. Our investments in new technologies and segments, particularly in EVs and railways, are beginning to yield results."

Subros' strong Q1 performance and strategic initiatives position the company well for sustained growth across diverse thermal management segments in the evolving automotive and transportation landscape.

Subros Limited , India's largest automotive air conditioning and thermal products manufacturer, has announced its unaudited financial results for the first quarter. The company reported significant year-on-year growth in revenue and profitability.

Financial Highlights

All financial figures in Rs. crore, except EPS in Rs.

Operational Performance

Subros Limited attributed its growth to several factors:

• Increase in sales volume across segments
• Start of production (SOP) for new projects, including Railways business
• Improved material cost due to cost optimization initiatives
• Positive impact from foreign exchange management and investment income

Segment-wise Performance

The company reported strong growth in its core business areas:

• Passenger Vehicle (PV) Segment: Thermal business growth of 19%
• Commercial Vehicle (CV) Segment: SOP of Truck Aircon and one Electric Vehicle (EV) project
• Railways: Contribution to revenue growth from new business in this segment

Management Strategy

The financial results presentation highlighted several key aspects of Subros Limited's performance and strategy:

• Focus on business expansion in the Commercial Vehicle segment, including bus, rail, and truck
• Emphasis on green mobility solutions, including Electric Vehicles (EV), Strong Hybrid Electric Vehicles (SHEV), and CNG vehicles
• Ongoing technology upgrades to meet regulatory changes such as BSVI, RDE, and CAFÉ norms
• Commitment to cost optimization through improvement in operational efficiencies
• Continued focus on ESG goals to meet future sustainability and social requirements

Future Outlook

Subros Limited's investor presentation outlined several areas for future growth and operational improvements:

• Aligning company growth with industry growth across all segments
• Realizing business opportunities in green mobility
• Mitigating foreign exchange impact through hedging and aggressive localization
• Enhancing human skill development and organizational structure to meet future requirements
• Expanding capacity through internal efficiency optimization and expansion plans

The company's focus on diversification into multiple segments, including railways and commercial vehicles, along with its emphasis on green mobility solutions, positions it well for future growth in the evolving automotive and transportation sectors.

Subros Limited continues to maintain its position as a leading player in the automotive air conditioning and thermal products industry, with a strong focus on innovation, cost optimization, and sustainable growth strategies.