For Q1 FY25, the adjusted EBITDA, excluding ESOP expenses, was INR 37.1 crore, a 33.9% increase from the INR 27.7 crore in the same period the previous year. Consequently, the adjusted EBITDA margin improved to 13.1% from 12.4%. The PAT stood at INR 18.4 crore, compared to INR 13.1 crore in Q1 FY24, accounting for a PAT margin of 6.5%.
The standalone financial performance for Q1 FY25 was also strong. The total income was INR 162.9 crore, up by 9.6% from INR 148.6 crore in Q1 FY24. EBITDA increased to INR 24.1 crore from INR 21.0 crore, marking a 14.5% rise Y-o-Y, with the EBITDA margin rising to 14.8% from 14.1%. PAT for the standalone business stood at INR 11.4 crore, a 41.0% increase from INR 8.1 crore in Q1 FY24, with the PAT margin enhancing by 160 basis points to 7.0% from 5.4%.
Atul Aggarwal, Managing Director of Sterling Tools Limited, said, "Total Income from our standalone business grew by 9.6% to INR 162.9 crore on a Y-o-Y basis. The EBITDA has increased by 14.5% Y-o-Y and margins improved to 14.8% in Q1 FY25 from 14.1% in Q1 FY24. PAT surged by 41.0%, on a Y-o-Y basis, to INR 11.4 crore. The company is focused on achieving higher revenue growth and it is well positioned to capture incremental market share going forward."
Sterling Gtake E-Mobility Limited (SGEM), a 100% subsidiary of STL and the largest Motor Control Unit manufacturer for the Electric Vehicle (EV) industry in India, also showed substantial growth. SGEM's total income saw a 62.7% growth Y-o-Y. Its contribution to STL's overall business increased from 33% in Q1 FY24 to 43% in Q1 FY25.
"SGEM continues to gain traction with total income witnessing a growth of 62.7% on a Y-o-Y basis. The revenue share of SGEM in the overall business has risen from 33% in Q1 FY24 to 43% in Q1 FY25. We are working to add to our EV product portfolio and continue to focus on customer diversification too," Aggarwal added.
Despite slight dampening of demand in the overall automobile industry during Q1 FY25, the EV market, particularly the two-wheeler segment, has been gaining momentum with cumulative sales reaching 1,82,050 units in Q1 FY25. Hybrid passenger vehicles are also attracting more attention, aligning well with STL's focus on the EV sector.
"On the industry front, the demand for automobiles was a bit muted during Q1 FY25. The EV 2-wheeler industry continues to gain momentum and the cumulative sales stood at 1,82,050 units in Q1 FY25. Hybrid PVs are getting more attention from OEs which aligns well with our EV focus," Aggarwal said.
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