Suprajit Engineering Limited (SUPRAJIT.NS) Bundle
From a Q4 consolidated revenue of ₹876.92 crore (up 11.98% YoY) to a full-year top line of ₹3,276.95 crore (a 13.16% rise), Suprajit Engineering's mix of domestic cable strength, a Suprajit Controls turnaround with an 11.8% EBITDA margin this quarter, and healthy balance-sheet metrics - including a conservative gearing of 0.50x and market capitalization near ₹6,048 crore - creates a compelling cross-section of growth, profitability shifts, liquidity cushions (current ratio 1.7x; ~₹300 crore liquid investments) and risks (raw-material volatility, OEM pricing pressure, FX exposure) that investors will want to parse in detail...
Suprajit Engineering Limited (SUPRAJIT.NS) - Revenue Analysis
Suprajit reported robust top-line expansion for Q4 FY2025 and the full fiscal year, driven by stronger domestic demand in cables and a sharp rebound in controls. Key headline figures and operational drivers are summarized below.
- Consolidated revenue (Q4 FY2025): ₹876.92 crore, up 11.98% YoY from ₹783.12 crore in Q4 FY2024.
- Consolidated revenue (FY2025): ₹3,276.95 crore, up 13.16% YoY from ₹2,895.86 crore in FY2024.
- Domestic cable division: revenue growth ~13% YoY; margin compression noted due to increased staffing costs.
- Exports of Indian cables: +35% YoY, signaling strong international demand.
- Suprajit Controls Division: turnaround to double-digit EBITDA margin of 11.8% in the quarter.
- Diversified product portfolio and presence across domestic and export markets underpin revenue resilience.
| Metric | Q4 FY2025 | Q4 FY2024 | YoY Change | FY2025 | FY2024 | YoY Change |
|---|---|---|---|---|---|---|
| Consolidated Revenue (₹ crore) | 876.92 | 783.12 | +11.98% | 3,276.95 | 2,895.86 | +13.16% |
| Domestic Cable Growth | +13% (quarter) | - | ||||
| Exports (Indian cables) | +35% (quarter) | - | ||||
| Suprajit Controls Division EBITDA Margin | 11.8% (quarter) | - | ||||
Operational notes:
- Revenue growth mix: domestic cables (primary driver) + exports (high-growth segment) + controls recovery.
- Margin dynamics: controls delivered margin improvement (11.8% EBITDA), while domestic cable margins compressed modestly due to increased staffing and associated operating costs.
- Strategic positioning: diversified product portfolio and balanced domestic/export footprint help insulate top line from single-market shocks.
Further company context and investor ownership details are available here: Exploring Suprajit Engineering Limited Investor Profile: Who's Buying and Why?
Suprajit Engineering Limited (SUPRAJIT.NS) - Profitability Metrics
The company reported a moderation in core profitability during the latest reporting period driven primarily by higher input costs and OEM pricing pressure. Key headline metrics show a contraction in operating profit margin (OPM) both on a quarterly and annual basis, while selective operating efficiencies improved EBITDA margins in parts of the business.- Quarterly OPM (Q4 FY25): 9.92% (down from 12.06% in Q4 FY24)
- Full-year OPM (FY25): 10.17% (down from 11.15% in FY24)
- Suprajit Controls Division EBITDA margin: +65% YoY to 9.7%
- Company-level EBITDA margin (Q4 FY25): 13.0% (up from 12.1% in Q4 FY24)
| Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 |
|---|---|---|---|---|
| Operating Profit Margin (OPM) | 9.92% | 12.06% | 10.17% | 11.15% |
| EBITDA Margin (Company) | 13.0% | 12.1% | (FY data not provided) | (FY data not provided) |
| EBITDA Margin - Suprajit Controls Division | 9.7% (YoY +65%) | ~5.9% (implied prior-year) | (FY data not separately disclosed) | (FY data not separately disclosed) |
| Primary headwinds | Increased raw material costs; pricing pressures from OEMs; cyclicality of end-user industries | |||
- Drivers of margin compression: elevated commodity and input prices squeezing gross margins, and limited pass-through to customers due to competitive OEM negotiations.
- Drivers of margin improvement: cost control measures, operational efficiencies in manufacturing and the notable turnaround in the Suprajit Controls Division.
- Risk factors: continued raw material price volatility and demand cyclicality in automotive and industrial end markets that can reverse margin gains.
Suprajit Engineering Limited (SUPRAJIT.NS) - Debt vs. Equity Structure
Suprajit Engineering's capital structure as of March 31, 2025 shows a conservative profile with controlled leverage, meaningful liquidity and predominantly long-term obligations supporting growth capex and working capital needs.- Net worth: ₹1,272 crore (as on 31 Mar 2025).
- Total debt: ₹657 crore (as on 31 Mar 2025), largely long-term in nature.
- Surplus cash & liquid investments: ₹251 crore invested in mutual funds and bonds.
- Gearing ratio (Total debt / Net worth): 0.50× - indicating low leverage.
- Interest coverage ratio (EBIT / Interest): 6.38× - comfortable debt serviceability.
- Net cash accruals to total debt: 0.38× - healthy pace of debt repayment relative to cash generation.
| Metric | Value (₹ crore) | Notes |
|---|---|---|
| Net Worth | 1,272 | Accretion to reserves supports capitalization |
| Total Debt | 657 | Primarily long-term; used for capex & working capital |
| Surplus Cash & Investments | 251 | Mutual funds and bonds; enhances liquidity |
| Gearing Ratio | 0.50× | Low gearing - financial flexibility |
| Interest Coverage Ratio | 6.38× | Strong protection against interest obligations |
| Net Cash Accruals / Total Debt | 0.38× | Indicates capacity to pare debt from internal accruals |
- Financial flexibility is supported by: surplus liquid investments (₹251 crore); conservative gearing (0.50×); and long-term debt tenure.
- Debt protection metrics indicate room to absorb cyclical pressures: interest coverage at 6.38× and net cash accruals covering ~38% of total debt annually.
- Primary uses of debt: capital expenditures and working capital to support product lines and geographic/operational expansion.
Suprajit Engineering Limited (SUPRAJIT.NS) - Liquidity and Solvency
Suprajit Engineering exhibits solid liquidity and solvency metrics through conservative bank-limit usage, sizable liquid investments and projected strong cash accruals that comfortably cover medium‑term debt obligations. The following points capture the core indicators:- Bank limit utilization: ~62.04% for the 12 months ended November 2024, indicating available headroom and strong short‑term liquidity.
- Projected cash accruals: estimated at ₹200-270 crore, sufficient against medium‑term term debt commitments of ₹67-70 crore.
- Current ratio (as of March 31, 2025): 1.7×, reflecting adequate working capital cover for near‑term liabilities.
- Liquid investments (as of March 31, 2025): ~₹300 crore in shares, debentures and mutual funds, enhancing solvency and providing ready liquidity.
- Liquidity drivers: diversified revenue base and efficient working‑capital management supporting receivables and inventory turns.
- Solvency position: strong net worth and low gearing, providing financial flexibility for operational and strategic needs.
| Metric | Value / Range | Implication |
|---|---|---|
| Bank limit utilization (12 months to Nov‑2024) | 62.04% | Low utilization → liquidity cushion |
| Projected cash accruals | ₹200-270 crore | Covers medium‑term term debt multiple times |
| Term debt obligations (medium term) | ₹67-70 crore | Manageable vs. cash accruals |
| Current ratio (31‑Mar‑2025) | 1.7× | Healthy short‑term liquidity |
| Liquid investments (31‑Mar‑2025) | ~₹300 crore | Provides additional buffer and optionality |
| Gearing | Low (approx. 0.2×) | Conservative capital structure |
| Net worth | Strong (supported by retained earnings) | Enhances solvency and borrowing capacity |
Suprajit Engineering Limited (SUPRAJIT.NS) - Valuation Analysis
Suprajit Engineering's valuation reflects a mix of steady fundamentals and market sentiment, supported by consistent revenue growth and sustained profitability metrics.- Market capitalization (Dec 2025): ₹6,048 crore
- 52‑week range: High ₹456 | Low ₹353
- Price-to‑Earnings (P/E): In line with industry peers (reflecting a reasonable valuation)
- Earnings per Share (EPS FY Mar 2025): ₹5.50
- Dividend payout ratio: ~30%
- Return on Equity (ROE FY Mar 2025): 15%
| Metric | Value | Notes |
|---|---|---|
| Market Capitalization | ₹6,048 crore | As of December 2025 |
| 52‑Week High / Low | ₹456 / ₹353 | Floating market range |
| P/E Ratio | Peer‑aligned | Indicative of fair relative valuation |
| EPS (FY Mar 2025) | ₹5.50 | Reported consolidated earnings |
| Dividend Payout Ratio | ~30% | Balanced shareholder return vs reinvestment |
| ROE (FY Mar 2025) | 15% | Efficient use of shareholder capital |
| Revenue Trend | Consistent growth | Supports valuation multiples |
- Valuation supports: steady EPS, mid‑teens ROE, and a disciplined dividend policy (~30%) that balances growth and shareholder returns.
- Relative P/E alignment with peers suggests limited premium/discount vs sector-valuation appears reasonable for investors seeking stable automotive components exposure.
- Market cap and 52‑week price band provide context for liquidity and potential entry/exit ranges.
Suprajit Engineering Limited (SUPRAJIT.NS) - Risk Factors
Suprajit Engineering operates in a capital- and commodity-sensitive automotive-components space. The company's financial health and near-term performance are materially influenced by the following risks and quantifiable exposures.- Raw material price volatility: margins fluctuate with steel, polymers, copper and resin prices; raw material costs historically account for ~55-65% of COGS.
- OEM pricing pressure: large OEM customers exert bargaining power, compressing gross margins during competitive tendering cycles.
- Cyclicality in end-user industries: demand for two‑wheelers, passenger vehicles and off‑highway segments is cyclical-volume downturns directly reduce utilization and operating leverage.
- Export competition: the export business competes with larger global component players, pressuring pricing and margin sustainability abroad.
- Foreign exchange exposure: significant exports and international subsidiaries expose reported profitability to INR volatility versus USD/EUR; FX movements can swing PAT materially.
- Regulatory risk: emission, safety and localization rules, plus incentives/policies in key markets, can alter product mix demand and required capex.
| Metric (FY / Latest TTM) | Value (Approx.) |
|---|---|
| Revenue | INR 1,350 crore (FY2023-24, approx.) |
| EBITDA | INR 160 crore (EBITDA margin ~11.9%) |
| Profit After Tax (PAT) | INR 95 crore |
| Export % of Revenue | ~33-36% |
| Net Debt / Equity | ~0.35-0.45x |
| Working Capital Days | ~85-100 days |
| FX Sensitivity | ~30% of revenue linked to foreign currency; 1% INR depreciation ≈ +INR 6-8 million to operating income (gross effect) |
- Raw-material risk mitigation: the company uses a mix of procurement strategies (hedging, long‑term contracts, vendor negotiations) but large spot-price moves can still compress margins by several hundred basis points within a year.
- Pricing & contract risk with OEMs: fixed-price contracts or component-supply agreements can lock in lower margins during commodity spikes; renegotiation cycles lag raw-material moves.
- Demand cyclicality: a 10-15% downturn in domestic vehicle production historically correlates with a similar or larger percentage fall in Suprajit's top-line growth for the following quarters due to high OEM concentration.
- Export competition & margin erosion: competitive bids for global OEMs can force margin concessions of 200-500 bps versus domestic projects.
- Foreign exchange management: partial natural hedges exist via foreign-currency revenue vs. imports; management uses forward contracts-residual unhedged exposure can produce quarterly P&L volatility.
- Regulatory impact: accelerated safety/EMC/regulatory standards may require incremental R&D and capex; sudden policy shifts (e.g., localization mandates) can reallocate revenue between higher- and lower-margin product lines.
Suprajit Engineering Limited (SUPRAJIT.NS) - Growth Opportunities
Suprajit is positioning for an active growth phase driven by a planned capital expenditure of ₹180 crore in FY2025, targeted product diversification, geographic expansion, and entry into EV-related components.- Total FY2025 capex: ₹180 crore; ~50% (~₹90 crore) earmarked for new product / project development.
- Financial targets: management guidance of double-digit revenue growth and double-digit EBITDA margin in FY2025.
- Braking systems: scheduled capex allocation and strategic focus on scaling braking-system business.
- Non-automotive U.S. business: recovery emphasis after a 30% decline in FY2024; present strategy aimed at stabilization and regrowth.
- EV opportunity: leveraging core expertise in automotive cables to develop EV component offerings (harnesses, high-voltage cables, sensor integration).
- Export push: prioritized expansion into European and North American markets to capture higher-margin OEM and aftermarket opportunities.
| Item | FY2025 Plan / Target | Amount / Note |
|---|---|---|
| Total Capex | Committed | ₹180 crore |
| Capex for New Products / Projects | Approx. 50% | ~₹90 crore |
| Revenue Growth Target | FY2025 | Double-digit % (management guidance) |
| EBITDA Margin Target | FY2025 | Double-digit % (management guidance) |
| U.S. Non-Auto Revenue | FY2024 | Declined ~30%; focus on stabilization in FY2025 |
| Geographic Focus | FY2025 | Europe & North America (export expansion) |
- Near-term tactical levers: allocate ~₹90 crore into R&D/product launches, ramp braking systems capacity, and targeted sales initiatives in Europe/North America.
- Medium-term strategic levers: validate EV components roadmap, convert stabilized U.S. non-auto base into growth, and seek higher-content-per-vehicle wins with OEMs.
- Key risks to monitor: execution of ₹180 crore capex, timeline for EV product commercialization, and recovery pace of U.S. non-automotive demand.
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