Setco Automotive Limited (BSE: 505075, NSE: SETCO), a leading manufacturer of Medium and Heavy Commercial Vehicle (MHCV) clutches in India, has reported its highest-ever first-quarter revenues, reflecting robust growth and strategic initiatives. The company’s unaudited financial results for the quarter ending June 30, 2024, were announced during its Board meeting on August 14, 2024.
Financial Highlights:
For Q1 FY25, Setco Automotive achieved a significant milestone with revenues reaching ₹162.6 crore, a notable increase from ₹145.2 crore in Q1 FY24. This growth is largely attributed to higher sales volumes of clutches in the aftermarket sector and the successful introduction of new Setco Allied products.
EBITDA (excluding other income) for the quarter surged to ₹20.3 crore, up from ₹14.2 crore in the same quarter of the previous fiscal year. This impressive 43% increase is the result of a favorable product mix, strategic cost-saving measures, and increased sales.
Business Milestones:
- Product Expansion: The company successfully launched new products under its Setco Allied brand, including Centre Bearings, in Q1 FY25.
- Customer Engagement: The ‘Drive Rewards’ program was rolled out through the Setco App, enhancing customer interaction and loyalty.
- Financial Restructuring: Setco’s subsidiary, Lava Cast, saw its debt restructured, leading to the withdrawal and dismissal of the insolvency petition against it.
Management’s Outlook:
Harish Sheth, Chairman & Managing Director of Setco Automotive, expressed satisfaction with the company’s performance, stating, “Our record sales reflect strong demand from both the aftermarket and OEM sectors, bolstered by the launch of new products. Additionally, our ongoing cost-saving initiatives and optimized product mix have significantly improved our margins. We are also pleased to report that our casting business has returned to profitability, marking a positive turnaround.”
Setco Automotive’s strong start to FY25 positions the company for continued growth, with further product innovations and strategic initiatives on the horizon.
Consolidated Q1 FY25 Financial Highlights
| Particulars (Rs. Crore) | Q1 FY25 | Q1 FY24 | Y-o-Y% | Q4 FY24 |
| Revenue from Operations | 162.6 | 145.2 | 12.0% | 173.8 |
| EBITDA | 20.3 | 14.2 | 42.9% | 22.3 |
| EBITDA Margin | 12.5% | 9.8% | +270bps | 12.9% |
