Suprajit Eng

Suprajit Engineering is India’s largest automotive cable maker with a capacity of 225 million cables  and its customers list includes all the automobile companies and some of the best companies abroad too.

The company posted a solid set of numbers for Q1FY17 and compared to that Q2FY17 was more tepid. Its net sales for the quarter was up 15% (YoY) at Rs.167 crore  and net profit was up 13% at Rs.22 crore. EBITDA for the quarter came in at Rs.30 cror, up 15% while margins remains steady at 17.75% v/s 17.57%.

The company had an other income of Rs.15 crore and this was on account of gains it made on sale of mutual funds. The tax outgo rose 52% and there was also an exceptional expense of Rs.4 crore and this was on account of the Phoenix Lamps takeover.

The company is planning to expand its business in North America and the first step towards that, it set up a subsidiary during the quarter in USA. Its unit in Tamil Nadu commenced commercial production, mainly for supply to OEMs in the state and this is expected to add on to the numbers in coming months.

Company’s equity stands at Rs.13.13 crore and annualized EPS came in at Rs.7.50 (FV of Re.1). Borrowings is at Rs.394 crore and cash at hand is at Rs.34 crore. Promoters stake is not too high at 47.37%.