Suprajit Engineering LtdQ4 FY24

Suprajit Engineering Ltd Q4 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹465.45P/E: 34.0Market Cap: ₹6.4K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3
  • Suprajit expects double-digit growth in its Domestic Cable Division (DCD) driven by strong order books and increased wins.
  • Electronics Division (SED) anticipates robust growth with new product launches, integration of mechanical speedometers, and expansion CAPEX planned.
  • Aftermarket sales in Phoenix Lamps are expected to grow this year despite challenges from the grey market.
  • Non-automotive overseas business margins are suppressed currently but expected to recover with market rebound in 1-2 years.
  • Suprajit aims to return North American and Matamoros plants to FY23 revenue levels within 2 years by introducing additional products.
  • Continued focus on premiumization and global actuation platforms will support Electronics and Actuator businesses' growth.
  • Inorganic growth opportunities are under evaluation to enhance geographic reach, capacity, and market share.
  • Overall, management remains confident of sales/volume growth driven by new contracts, product innovation, and market expansion.

See what Suprajit Engineering Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no explicit mention of any current or future fundraising through debt or equity in the transcript.
  • The company has disclosed a total debt level of ₹624 crores as of March 2024 and a surplus cash balance of ₹513 crores invested in mutual funds and bonds.
  • The focus seems to be on operational improvements, CAPEX of about ₹180 crores covering all divisions and geographies, and strategic investments rather than raising new funds.
  • No statements by management during the call indicated plans for raising capital via debt or equity.

See what Suprajit Engineering Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Total CAPEX planned for FY25 is about ₹180 crore across all divisions and global locations.
  • Approximately 50% (~₹90 crore) allocated for maintenance CAPEX such as modernization, EHS, capacity buildup, quality, productivity, and automation.
  • Remaining 50% (~₹90 crore) earmarked for strategic investments including:
  • - Setting up a greenfield technology center (STC) in Bangalore; current team size 100+, expected to grow to 200.
  • - Purchase of additional land and industrial buildings in Bangalore.
  • - Expansion by adding a new floor at the Chakan plant.
  • These strategic investments aim to support new product development, infrastructure buildup, and future business growth.

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How does Suprajit Engineering Ltd rank vs peers in Auto Components?

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