Suprajit Engineering , a leading automotive component manufacturer, has provided an optimistic growth outlook for its various divisions in the coming year. The company anticipates strong performance across its business segments, with expectations of improved margins and revenue growth.

Division-wise Growth Projections

Domestic Cable and Controls Divisions

Suprajit Engineering expects double-digit growth for both its Domestic Cable Division and Controls Division. This projection indicates a strong demand for the company's cable and control products in the domestic market.

Phoenix Lamps Division

The Phoenix Lamps division, known for its automotive lighting solutions, is anticipated to grow in single digits. While the growth rate is more modest compared to other divisions, it still suggests a positive trajectory for this segment.

Electronics Division

The company's Electronics Division is projected to achieve double-digit growth, albeit from a smaller base. This forecast highlights the increasing importance of electronic components in the automotive industry and Suprajit's efforts to capitalize on this trend.

Quarterly Performance Outlook

Suprajit Engineering expects overall improvement in its performance from the second quarter onwards. Notably, the Controls Division is anticipated to show margin improvements starting from the first quarter itself, indicating the company's focus on enhancing profitability across its business units.

SCS Package and EBITDA Targets

The company has set an ambitious goal to turn EBITDA positive on the SCS package by the last quarter. This target suggests that Suprajit is working on optimizing its operations and improving the profitability of this specific business segment.

Overall Financial Outlook

Excluding the SCS package, Suprajit Engineering forecasts a robust year ahead with the following expectations:

• Double-digit revenue growth
• EBITDA margin between 12.00% to 14.00%

These projections indicate the company's confidence in its business strategy and market position. The anticipated improvement in EBITDA margins compared to the previous year suggests potential enhancements in operational efficiency and cost management.

Management's Perspective

The management of Suprajit Engineering appears optimistic about the company's prospects, forecasting a strong year with good double-digit growth and potentially better margins than the previous year. This positive outlook is based on the expected performance across various divisions and the company's strategic initiatives.

In conclusion, Suprajit Engineering's growth projections across its diverse business segments paint a picture of a company poised for expansion in the automotive components sector. The anticipated improvements in revenue and profitability metrics suggest that the company is well-positioned to capitalize on market opportunities and drive shareholder value in the coming year.

Suprajit Engineering , a leading automotive component manufacturer, has released its financial results for the fourth quarter, showcasing a mixed performance with revenue growth but a decline in profitability. The company has also announced a dividend payout for its shareholders.

Revenue Growth Amid Profitability Challenges

Suprajit Engineering reported a revenue of ₹8800.00 million for the fourth quarter, marking a significant increase from ₹7830.00 million in the same quarter of the previous year. This 12.4% year-over-year growth indicates the company's ability to expand its sales despite challenging market conditions.

However, the company faced headwinds in terms of profitability:

• EBITDA: Decreased to ₹641.00 million from ₹801.00 million year-over-year
• EBITDA Margin: Dropped to 7.30% from 10.23% in the previous year
• Consolidated Net Profit: Fell to ₹272.00 million from ₹592.00 million, representing a substantial 54% decline

The significant drop in net profit and EBITDA margin suggests that Suprajit Engineering experienced increased costs or operational challenges during the quarter, which offset the revenue gains.

Dividend Announcement

Despite the profitability pressures, Suprajit Engineering has declared a dividend of ₹1.75 per share. This decision to maintain a dividend payout may be seen as a signal of the company's confidence in its financial stability and commitment to shareholder returns.

Financial Performance Overview

To better illustrate the company's Q4 performance, here's a comparison of key financial metrics:

The table clearly shows the contrast between the company's top-line growth and bottom-line contraction.

Investors and analysts will likely be watching closely to see how Suprajit Engineering plans to address the profitability challenges while maintaining its growth trajectory in the coming quarters. The management's strategies to improve operational efficiency and manage costs will be crucial in determining the company's future financial performance.