Endurance Technologies

OPM Jumped to 13.35%

Aug 11, 2021 06:08 IST capital market

For the quarter ending June 2021, Net sales (including other operating income) of Endurance Technologies has increased 223.43% to Rs 1,151.97 crore compared to quarter ending june 2020. 

Operating profit margin has jumped from 0.72% to 13.35%, leading to 5,884.82% rise in operating profit to Rs 153.81 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 60.79% to 63.68%.   Purchase of finished goods cost rose from 0.69% to 0.87%.   Employee cost decreased from 18.46% to 6.49%.   Other expenses fell from 19.35% to 15.95%.   

Other income up 40.14% to Rs 5.83 crore. During the quarter ending June 2021, PBIDT stood at Rs 159.64 crore compared to a profit of Rs 6.73 crore in quarter ended June 2020.

 Provision for interest fell 83.25% to Rs 0.34 crore.  Provision for depreciation rose 7.94% to Rs 50.18 crore.  

Profit before tax was Rs 77.67 crore compared to loss of Rs 41.79 crore. Provision for tax was debit of Rs 20.87 crore, compared to credit of Rs 9.93 crore.  Effective tax rate was 26.87% compared to 23.76%. Profit after tax was Rs 56.8 crore compared to loss of Rs 31.86 crore.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company was Rs 56.8 crore compared to loss of Rs 31.86 crore.

Promoters stake was 75.00% as of 30 June 2021 ,compared to 75.00% as of 30 June 2020 .  

Full year results analysis

Net sales (including other operating income) of Endurance Technologies has declined 3.35% to Rs 4,773.03 crore.  

Operating profit margin has jumped from 15.03% to 15.33%, leading to 1.44% decline in operating profit to Rs 731.60 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 60.99% to 61.63%.   Purchase of finished goods cost rose from 0.57% to 0.93%.   Employee cost decreased from 6.02% to 5.95%.   Other expenses fell from 17.33% to 16.31%.   

Other income fell 62.56% to Rs 13.55 crore.  Provision for interest fell 55.64% to Rs 4.8 crore.  Loan funds declined from Rs 150.38 crore as of 31 March 2020 to Rs 47.73 crore as of 31 March 2021.  Inventories rose to Rs 329.53 crore as of 31 March 2021 from Rs 265.83 crore as of 31 March 2020.  Sundry debtors were higher at Rs 812.51 crore as of 31 March 2021 compared to Rs 473.76 crore as of 31 March 2020.  Cash and bank balance declined from Rs 125.33 crore as of 31 March 2020 to Rs 34.29 crore as of 31 March 2021.  Investments rose to Rs 534.84 crore as of 31 March 2021 from Rs 402.23 crore as of 31 March 2020 .  

Provision for depreciation rose 2.09% to Rs 203.42 crore.  Fixed assets declined from Rs 1,516.86 crore as of 31 March 2020 to Rs 1,457.29 crore as of 31 March 2021.  Intangible assets increased from Rs 22.74 crore to Rs 29.83 crore.  

Profit before tax down 5.54% to Rs 536.93 crore.  Provision for tax was expense of Rs 133.5 crore, compared to Rs 140.75 crore.  Effective tax rate was 25.39% compared to 24.76%.

Profit after tax fell 8.30% to Rs 392.20 crore.  

Promoters stake was 75.00% as of 31 March 2021 ,compared to 75.00% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 296.78 crore for year ended March 2021 from Rs 628.14 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 199.65 crore, compared to Rs 296.18 crore during the year ended March 2020.  

Other Highlights

In Q1 FY22, Indian operations contributed 68% of Consolidated Total Income (including Other Income) and balance 32% came from European operations.

In Q1 FY22, Indian operations recorded Aftermarket sales of Rs 62.6 crore, as against Rs 16.9 crore in Q1 FY21.

Management commentary: Mr. Anurang Jain, Managing Director of the Company said: Very few two-wheelers were sold by Indian OEMs in the lockdown affected Q1 of the last financial year. However, Q2, Q3 and Q4 had witnessed sales in excess of 5.4 million vehicles per quarter. In Q1 of this fiscal, the sale of two-wheelers again dropped to 3.54 million, due to a renewed wave of infections in the country. Against such market drop of 35% over the preceding quarter, Endurances standalone top-line fell 28%. With gradual easing of restrictions on commercial activity and likely reopening of educational institutions, guick demand revival can be expected.

In Europe (European Union and United Kingdom), the new car registration data showed an improvement in Ql of this fiscal, against Q4 of the previous year. However, production of cars in markets such as Germany showed a decline. Our European operations recorded a marginal increase in Total Income, compared to the exit quarter.

We continue to win orders for supply of products to European four-wheeler OEMs, including sizeable orders for EV and hybrid applications. In India, we continue efforts to supply all four of our products to all major 2W3W OEMs. We have also made significant progress in winning aluminium casting orders for passenger cars, commercial vehicles and tractors, and for non-auto applications.

During the last year, we had taken major cost optimization actions by consolidating operations in Italy and offering voluntary separation to surplus manpower in Aurangabad. In May 2021, we have made our Chakan operations leaner by offering a voluntary separation scheme. Applications from 177 workmen under this scheme were accepted, leading to a one-time outgo of Rs. 314.5 million for the Company, and the same has been recorded as an exceptional item in this quarters results. We have also commenced prodrlction of steel-braided brake hoses in June 2021, for ABS applications in mid and high end bikes. We take pride in being cost-competitive while delivering quality products to our customers. During the quarter, our factories in India and Europe did not face any government mandated lockdowns. The Company continues to take measures to ensure a safe workplace for its people.

Endurance Technologies : Standalone Results

 

Quarter ended Year ended
Particulars 202106 202006 Var.(%) 202103 202003 Var.(%)
Net Sales (including other operating income) 1,151.97 356.17 223.43 4,773.03 4,938.57 -3.35
OPM (%) 13.35 0.72 1,263 bps 15.33 15.03 30 bps
OP 153.81 2.57 5,884.82 731.6 742.32 -1.44
Other Inc. 5.83 4.16 40.14 13.55 36.19 -62.56
PBIDT 159.64 6.73 2,272.07 745.15 778.51 -4.29
Interest 0.34 2.03 -83.25 4.8 10.82 -55.64
PBDT 159.3 4.7 3,289.36 740.35 767.69 -3.56
Depreciation 50.18 46.49 7.94 203.42 199.25 2.09
PBT 109.12 -41.79 LP 536.93 568.44 -5.54
PBT before EO 109.12 -41.79 LP 536.93 568.44 -5.54
EO Income -31.45 0 - -11.23 0 -
PBT after EO 77.67 -41.79 LP 525.7 568.44 -7.52
Taxation 20.87 -9.93 PL 133.5 140.75 -5.15
PAT 56.8 -31.86 LP 392.2 427.69 -8.3
P/(L) from discontinued operations net of tax 0 0 - 0 0 -
Net profit after discontinued operations 56.8 -31.86 LP 392.2 427.69 -8.3
EPS (Rs)* 5.67 -2.27 LP 28.48 30.41 -6.34
Notes
* EPS is on current equity of Rs 140.66 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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