Suprajit Engineering , a leading automotive component manufacturer, has reported a 6.4% year-on-year growth in consolidated revenue for the first half, reaching INR 1,605.00 crores. The company's performance was particularly strong in its Controls Division, which posted an impressive 50% EBITDA growth and 11.6% margins.

Strong Performance in Controls Division

The Controls Division, which is the global cables and controls business excluding the recently acquired SCS (Suprajit Controls Systems), emerged as the star performer for the company. N.S. Mohan, Managing Director and Group CEO, highlighted that the division's operational EBITDA grew by approximately 50% year-on-year, achieving a double-digit EBITDA margin of 11.6%.

This robust performance reflects the underlying operational improvements implemented by the team, including:

• In-sourcing of populated PCBA (Printed Circuit Board Assembly) to the company's Electronics division
• Labor productivity enhancements
• Successful passing on of tariff-related costs to customers

SCS Integration and Restructuring Progress

Suprajit Engineering is making steady progress with the integration and restructuring of SCS, which it acquired recently. The company expects to complete the restructuring process by December 2025. Key developments include:

• Relocation of operations from the Juarez plant to the Matamoros plant
• Strengthening of Matamoros and Brownsville facilities
• Qualification of the Wichita facility (Wescon) with IATF certification to potentially transit into the MAGA (Make America Great Again) initiative

The company aims to turn SCS EBITDA positive by the fourth quarter of the current fiscal year.

Challenges in Phoenix Lamps Division

While the Controls Division excelled, the Phoenix Lamps Division faced headwinds due to reduced exports to Middle Eastern countries, particularly affecting the Trifa brand and direct sales. However, the company expects the second half of the fiscal year to be better for this division.

New Product Developments and Market Expansion

Suprajit Engineering is actively expanding its product portfolio and market presence:

1. Throttle Controls: Developed solutions without rare earth magnets and non-magnetic sensors, attracting interest from global players.
2. Actuators: Introduced solar-based actuators, gaining attention in the market.
3. Braking Systems: Showcased Mechanical Disc Brake System (MDBS) for heavy vehicles, receiving positive feedback at EICMA 2025.
4. Sunroof Cables: Installation of new machines for manufacturing flocked cables, positioning the company as a first-mover in India for this high-tech product.

Future Outlook

Despite global challenges and uncertainties, Suprajit Engineering remains optimistic about its future prospects. The company continues to focus on:

• Expanding its global footprint in the Controls division
• Growing the Electronics division with new product launches
• Developing the Braking division as a new growth area
• Leveraging its technology center (STC) for innovative product development

Ajith Kumar Rai, Founder and Chairman, stated, "Accepting a slightly muted PLD performance, the rest of the divisions have done well. They have performed ahead of the industry. We expect the second half would be better than the first half."

As Suprajit Engineering continues to navigate global challenges and capitalize on new opportunities, it remains committed to its strategy of growing 5% to 10% ahead of the global automotive industry while maintaining strong margins.

Suprajit Engineering Limited (SEL) has announced its strategic outlook and financial targets for the current fiscal year, focusing on improved performance and margin stability.

SCS Division Breakeven Target

Suprajit Engineering expects its Suprajit Cable Systems (SCS) division to reach EBITDA breakeven by the fourth quarter of this fiscal year. This projection indicates the company's confidence in the division's improving operational efficiency and cost management.

Performance Expectations

The company anticipates stronger performance in the second half of the fiscal year compared to the first half. This outlook suggests potential for improved revenue and profitability in the coming quarters.

EBITDA Margin Guidance

Management has set an EBITDA margin guidance of 12-14% for the company. Notably, Suprajit Engineering is currently operating at the upper limit of this range, achieving a 14% EBITDA margin. This performance demonstrates the company's ability to maintain strong profitability despite market challenges.

Growth Strategy

Suprajit Engineering has outlined a growth strategy, aiming to outpace the global automotive industry. The company plans to grow 5-10% above the global automotive industry growth rate, which is expected to be in the low single digits of 1-3%.

Recent Financial Performance

According to the company's latest financial results for the quarter ended September 30:

• Total income from operations: ₹23.02 crore
• Net profit before tax: ₹(41.93) crore
• Net profit after tax: ₹(40.18) crore

While the company reported a loss in the recent quarter, its strategic initiatives and positive outlook for the second half of the fiscal year suggest potential for improvement.

Investors and analysts can access more detailed information about Suprajit Engineering's performance and strategy through the audio recording of the recent analyst and institutional investor meeting, available on the company's website.

As Suprajit Engineering navigates the challenges in the automotive sector, its focus on operational efficiency, margin maintenance, and above-market growth targets positions the company for potential recovery and long-term value creation.