Uniparts India Limited , a global manufacturer of engineered systems and solutions, has reported a robust performance for the second quarter, demonstrating resilience amidst challenging market conditions.

Financial Highlights

• Revenue Growth: The company delivered a 14% year-on-year revenue growth, reaching Rs. 283.00 crores in Q2.
• EBITDA Expansion: EBITDA margin expanded to 22.60%, showcasing operational efficiency.
• Strong Cash Position: Uniparts maintains a net debt-free status with Rs. 226.00 crores in cash.
• Dividend Payout: The company paid an interim dividend of Rs. 37.70 crores.

Operational Performance

Uniparts India's Q2 performance remained consistent with Q1, aligning with the company's guidance for double-digit growth. The company demonstrated operational stability despite facing challenges from severe flooding in North India, highlighting the resilience of its team and robustness of operational processes.

Market Dynamics and Growth Drivers

1. Construction Equipment Segment: Showing early signs of stabilization globally, with increasing spend on AI infrastructure aiding growth in North America.
2. Agricultural Segment:
   • Large Agriculture: Soft market conditions in North America, but improving outlook in Europe.
   • Small Agriculture: Better performance compared to large agriculture, with positive momentum in compact equipment.
3. Aftermarket: Expected to grow in single digits year-on-year.

Strategic Initiatives

1. Dual-Shore Manufacturing: Continues to offer customers flexibility and risk diversification, strengthening Uniparts' position as a strategic supplier.
2. Mexico Warehouse: Became operationally ready in October, enhancing delivery capabilities.
3. New Business Awards: Secured new business awards worth Rs. 200.00 crores annually.

Future Outlook

Uniparts India remains focused on deepening customer partnerships and expanding its footprint in large agricultural and construction equipment segments. The company is targeting mid-teen growth, supported by its robust new business award pipeline and strategic market positioning.

Management Commentary

Gurdeep Soni, Chairman and Managing Director, stated, "Our Q2 performance remains consistent with Q1, delivering a 14% year-on-year growth. This reinforces our confidence in achieving double-digit growth."

Tanushree Bagrodia, Whole Time Director & Group Chief Operating Officer, added, "Our dual-shore manufacturing model continues to offer customers flexibility and risk diversification, thus strengthening our position as a strategic supplier."

Uniparts India's strong Q2 performance, coupled with its strategic initiatives and market positioning, indicates a positive trajectory for the company in the evolving global off-highway equipment market.

Uniparts India Limited , a global manufacturer of engineered systems and solutions, has reported a strong financial performance for the second quarter. The company's consolidated results show significant growth in both revenue and profitability, reflecting its operational efficiency and market strength.

Financial Highlights

• Net Profit: Uniparts India's consolidated net profit for Q2 jumped to 394.00 million rupees, marking an impressive 87% increase from 211.00 million rupees in the same quarter last year.
• Revenue: The company's revenue grew to 2.77 billion rupees, up from 2.40 billion rupees in Q2 of the previous year, representing a 15.4% year-over-year growth.
• EBITDA: Operational efficiency improved significantly, with EBITDA margin expanding to 20.97% from 15.15% in the corresponding quarter. Absolute EBITDA rose to 580.50 million rupees from 365.80 million rupees.

Operational Performance

The company's robust performance can be attributed to several factors:

1. Market Demand: The global off-highway market, particularly within the construction equipment segment, is showing early signs of stabilization after a prolonged period of softness.
2. Operational Resilience: Despite challenges such as severe floods in North India, Uniparts' operations remained stable, demonstrating the resilience of its teams and the robustness of its operational processes.
3. Dual-Shore Manufacturing: The company's dual-shore manufacturing model continues to offer customers flexibility and risk diversification, strengthening Uniparts' position as a strategic partner.

Management Commentary

Mr. Gurdeep Soni, Chairman & Managing Director of Uniparts India, commented on the results: "Our Q2 performance remained consistent with Q1, delivering a 14% year-on-year growth. This is in line with the guidance we shared in earlier calls and reinforces our confidence in achieving double-digit growth for the fiscal year."

He further added, "As we navigate an evolving global environment, our teams continue to grow stronger, more agile, and better equipped to manage volatility and deliver consistent performance."

Future Outlook

While the company maintains a positive outlook, it's important to note that Uniparts India operates in a dynamic global market. The management's focus on operational efficiency, strategic partnerships, and market responsiveness positions the company well for continued growth.

Investors and stakeholders will be watching closely to see if Uniparts India can maintain this growth trajectory in the coming quarters, especially given the evolving global economic landscape.

Note: All financial figures are in Indian Rupees (INR).