Suprajit Engineering Q1 Review - Non-Automotive Business To Drive Growth, Margin: Dolat Capital
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Dolat Capital Report
Suprajit Engineering Ltd. displayed resilient performance in a tough quarter.
Revenue de-grew 30% QoQ to Rs 3.61 billion led by 36% QoQ fall in cable division and 40% fall in Phoenix Lamps division division offset by flat revenue of non-automotive division.
Ebitda margin contracted 232 basis points QoQ to 13.6% led by negative operating leverage.
Despite the weakness in domestic two-wheelers original equipment manufacturers production, core cable business outperformed due to sharp jump in two-wheelers OEMs export and strong traction in four-wheeler export division.
Management expects Q2 numbers to be strong despite all odds.
In automotive, Suprajit Engineering has added many products like electronics instrument cluster, combined braking system for electric two-wheeler and the brake shoes.
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