Suprajit Engineering : 4QFY23 Business Updates

	May 29, 2023
	SEL/SEC/ 2023-2024/20
BSE Limited	National Stock Exchange of India Ltd
Department of Corporate Services	Exchange Plaza, C-1,Block-G,
P. J. Towers, 25th Floor, Dalal Street,	Bandra Kurla Complex, Bandra (E)
Mumbai- 400 001	Mumbai- 400 051
Ref: 532509	Ref: SUPRAJIT

Dear Sirs,

Sub: Press Release

Please find enclosed Press Release dated May 29, 2023.

Kindly take the aforesaid information on record in compliance of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015.

Thanking you,

Yours faithfully,

For Suprajit Engineering Limited

MEDAPPA GOWDA JANTIKAPU

Digitally signed by MEDAPPA GOWDA JANTIKAPU

Date: 2023.05.29 15:19:11 +05'30'

Medappa Gowda J CFO & Company

Encl: as above

PRESS RELEASE

FINANCIAL RESULTS AND BUSINESS UPDATE - 29th MAY 2023.

Results for the year ended :															(Rs. In Million)
	STANDALONE	MARCH 2023			MARCH 2022	Growth
	Amount	%			Amount			%
	OPERATING REVENUE (Net of taxes)	14,310.19						12,712.84							12.56%
	EBITDA (Operational)	2,495.33	17.44%			2,126.69			16.73%	17.33%
	CONSOLIDATED (Excluding LDC)	MARCH 2023			MARCH 2022	Growth
	Amount		%			Amount		%
	OPERATING REVENUE (Net of taxes)	20,592.76						18,404.77								11.89%
	EBITDA (Operational)	3,124.51		15.17%			2,599.04			14.12%	20.22%
	CONSOLIDATED (Including LDC)	MARCH 2023			MARCH 2022	Growth
	Amount		%			Amount		%
	OPERATING REVENUE (Net of taxes)	27,523.55						18,404.77								49.55%
	EBITDA (Operational)	3,187.42		11.58%			2,599.04			14.12%	22.64%
	Phoenix Lamps Division	MARCH 2023		MARCH 2022			Growth
	Consolidated (PLD)	Amount		%			Amount			%
	OPERATING REVENUE (Net of taxes)	3,640.01						3,418.68									6.47%
	EBITDA (Operational)	299.20		8.22%			241.78			7.07%			23.75%
	SENA DIVISION (NON-		MARCH 2023			MARCH 2022		Growth
	AUTOMOTIVE)		Amount	%			Amount		%
	OPERATING REVENUE (Net of taxes)		4,601.74						4,199.58									9.58%
	EBITDA (Operational)		666.35	14.48%				604.36			14.39%			10.26%
	LDC DIVISION	Q1 June-22			Q2 Sep-22			Q3 Dec-22	Q4 Mar-23
	OPERATING REVENUE (Net of taxes)	1,596.29		1,689.39		1,794.83				1,858.00
	EBITDA (Operational)	(72.44)		(15.65)						66.18				85.69
	EBITDA (Operational) %	(4.54%)		(0.93%)		3.69%				4.61%

Above Operational EBITDA is without considering all non-operational income, forex gain / loss & acquisition expenses.

Results for the quarter ended

2	PRESS RELEASE

(Rs. In Million)

STANDALONE			Q4 MAR-23		Q4 MAR-22		Growth
		Amount		%		Amount			%
OPERATING REVENUE (Net of taxes)	3,394.86					3,562.27						(4.70%)
EBITDA (Operational)	626.66		18.46%		553.09			15.53%		13.30%
CONSOLIDATED (Excluding LDC)			Q4 MAR-23	Q4 MAR-22		Growth
		Amount	%		Amount	%
OPERATING REVENUE (Net of taxes)		5,139.48				5,059.17						1.59%
EBITDA (Operational)		811.02	15.78%		765.58			15.13%		5.93%
CONSOLIDATED (Including LDC)			Q4 MAR-23	Q4 MAR-22		Growth
		Amount		%		Amount		%
OPERATING REVENUE (Net of taxes)			6,990.09				5,059.17					38.17%
EBITDA (Operational)			895.52		12.81%	765.58		15.13%		16.97%
Phoenix Lamps Division Consolidated			Q4 MAR-23	Q4 MAR-22			Growth
(PLD)			Amount		%		Amount		%
OPERATING REVENUE (Net of taxes)			928.56				962.21						(3.50%)
EBITDA (Operational)			79.68		8.58%		64.77			6.73%		23.01%
SENA DIVISION (NON-			Q4 MAR-23	Q4 MAR-22		Growth
AUTOMOTIVE)			Amount	%		Amount		%
OPERATING REVENUE (Net of taxes)		1,164.44				1,132.06					2.86%
EBITDA (Operational)		274.68	23.59%		231.80			20.48%		18.50%

Above Operational EBITDA is without considering all non-operational income, forex gain / loss & acquisition expenses.

Group Debt Level:

	PARTICULARS			Mar-23			Mar-22
	Long Term			2,648			138
	Short Term	3,769		2,977
	TOTAL			6,417			3,115
	Investment in Mutual Funds	4,451		2,619

3	PRESS RELEASE

Sector and Geographical Transformation:

BUSINESS UPDATE:

• The Board has recommended a final dividend of Rs. 1.25 (125%) per equity share of Re.1/- each for the year 2022-23, making the total dividend at Rs.2.30 (230%) as against the total dividend of Rs.2.00 (200%) per equity share of Re.1/- each, paid during the previous year. The aggregate of the dividend payout for the year under report is Rs. 318.30 Million against Rs. 276.77 Million paid during the previous year.
• The overall Indian automotive segment grew at 11% during the year 2022-23. Against this, Suprajit's India business grew at 12.56%%, despite a weak 2-wheeler market.
• The consolidated business grew at 49.55% as compared to 14.12% in previous year.
• High interest rates and inflation are having its impact on the global economy, leading to recessionary trends globally.

4	PRESS RELEASE

• Ukraine war is of particular concern in the European region, where automotive volumes have shrunk further.
• Margins consolidated in the 4th quarter, compared to previous quarters both on standalone and consolidated basis.
• EV market expansion continues amidst FLAME issues.

DIVISIONAL HIGHLIGHTS FOR THE YEAR:

Domestic Cable Division (DCD) :

1. DCD performed strongly both in sales growth and margins improvements, due to strong performance in OEM and aftermarket.

1. Two-wheelermarket continues to be under pressure, with a negative growth of 4% in Q4.

1. The new facility for comprehensive aftermarket cable manufacturing commenced its operations during February 2023. This consolidation will further strengthen aftermarket, distribution, performance and growth.

1. DCD continues to support the new EV players with new products.

Suprajit Automotive (SAL) and Suprajit Europe (SEU):

1. SAL & SEU performed commendably during the year with sales growth and margin improvement despite muted automotive volume in Europe and US.

1. New business pipeline is robust for the coming years, giving clear visibility for the division.

1. Won multiple new cable businesses with key European OEMs for their EV platforms.

Suprajit Engineering Non-Automotive (SENA) Division:

1. The North American markets in this segment have slowed down, and is expected to continue to be soft due to customer pressure in US.

1. The sales growth has been modest, but margins have remained stable.

1. New opportunities for the division continue to be promising for products like seeder gearboxes and electronic controls.

Phoenix Lamps Division (PLD):

1. The year may be considered as a year of recovery for the division, post tremendous pressure on input costs and price pressure on the products in the marketplace.

1. This division has recovered remarkably during the year with business growth and margin improvement, despite LED penetration in the headlamp segment.

1. Restructuring plan for PLD and its subsidiaries has been in motion in the last 2 years, which has further aided in the turnaround of margins for the second half of the year.