By Malvika Gurung
Investing.com -- The automotive fasteners manufacturer Sterling Tools Ltd (NS: STTL ) (STL) gained 3% to an intraday high of Rs 368 apiece on Thursday after the company reported healthy double-digit growth in topline and bottomline figures for the quarter ended June 30, 2023.
Sterling Tools is India’s second-largest automotive fasteners manufacturer for the last four decades and one of the largest motor control unit (MCU) suppliers for electric vehicles in the country.
The company’s consolidated profit after tax (PAT) jumped 36.4% on a year-on-year (YoY) basis to Rs 13.1 crore in the first quarter of the financial year 2023-24, while rallying 68% on a sequential basis.
Its net profit stood at Rs 9.6 crore in the same period last year, and at Rs 7.8 crore in the quarter ended March 31, 2023.
Sterling Tools reported an impressive 27.6% rise in total income at Rs 222.8 crore for the June-ended quarter compared to Rs 174.6 crore in the corresponding quarter of last year, while on a QoQ basis, the figure advanced 4.8%.
The company’s profit margin has improved to 5.9% in the reporting quarter from 5.5% in the year-ago period while increasing significantly from 3.7% in the preceding quarter.
Its EBITDA surged by 21.6% YoY and 18.2% sequentially to Rs 27.7 crore in Q1 FY24, while the EBITDA margin contracted slightly to 12.4% in the June quarter from 13% last year.
“Overall auto-industry growth has been tepid and segments like CV and tractors have witnessed de-growth. However, we have reported revenue growth of 7.4% YoY in our fasteners business,” stated Sterling Tools’ Whole Time Director, Atul Aggarwal.
The small-cap company remains optimistic about its plans for FY24, both for fasteners as well as EV component businesses.
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