Endurance Technologies

6 Sep 2022 , 11:03 AM

For the quarter ending june 2022 consolidated net sales (including other operating income) of Endurance Technologies has increased 24.81% to Rs 2113.83 crore?compared to quarter ended june 2021.Operating profit margin has declined from 14.43% to 11.34%, leading to 1.86% decline in operating profit to Rs 239.77 crore.??Raw material cost as a % of total sales (net of stock adjustments) increased from 53.62% to 60.12%. ??Purchase of finished goods cost fell from 1.87% to 1.70%. ??Employee cost decreased from 11.04% to 8.54%. ??Other expenses fell from 19.58% to 18.70%. ??Other income fell 63.12% to Rs 4.68 crore.??PBIDT fell 4.89% to Rs 244.45 crore.??Provision for interest rose 31.51% to Rs 1.92 crore.??PBDT fell 5.09% to Rs 242.53 crore.??Provision for depreciation rose 0.90% to Rs 99.15 crore.??Profit before tax down 8.84% to Rs 143.38 crore.??Share of profit/loss were nil in both the periods.??Extraordinary items were increased to Rs -10.29 crore.??Provision for tax was expense of Rs 29.7 crore, compared to Rs 29.27 crore.??Effective tax rate was 22.32% compared to 23.26%.Minority interest was nil in both the periods.??Net profit attributable to owners of the company increased 7.07% to Rs 103.39 crore.??Promoters stake was 75.00% as of 30 June 2022 ,compared to 75.00% as of 30 June 2021 .??

Full year results analysis.

Net sales (including other operating income) of Endurance Technologies has increased 15.31% to Rs 7549.14 crore.??Operating profit margin has declined from 15.89% to 12.78%, leading to 7.27% decline in operating profit to Rs 964.64 crore.??Raw material cost as a % of total sales (net of stock adjustments) increased from 53.29% to 57.93%. ??Purchase of finished goods cost fell from 1.37% to 1.13%. ??Employee cost decreased from 10.30% to 9.08%. ??Other expenses rose from 19.20% to 19.23%. ??Other income rose 33.64% to Rs 41.04 crore.??PBIDT fell 6.09% to Rs 1005.68 crore.??Provision for interest fell 53.85% to Rs 6.35 crore.??Loan funds declined from Rs 641.10 crore as of 31 March 2021 to Rs 429.61 crore as of 31 March 2022.??Inventories rose to Rs 701.14 crore as of 31 March 2022 from Rs 611.85 crore as of 31 March 2021.??Sundry debtors were lower at Rs 970.37 crore as of 31 March 2022 compared to Rs 1,040.98 crore as of 31 March 2021.??Cash and bank balance declined from Rs 513.33 crore as of 31 March 2021 to Rs 402.64 crore as of 31 March 2022.??Investments rose to Rs 486.78 crore as of 31 March 2022 from Rs 444.33 crore as of 31 March 2021 .??PBDT fell 5.47% to Rs 999.33 crore.??Provision for depreciation fell 4.36% to Rs 381.73 crore.??Fixed assets increased to Rs 2,574.88 crore as of 31 March 2022 from Rs 2,524.74 crore as of 31 March 2021.??Intangible assets increased from Rs 173.98 crore to Rs 259.12 crore.??Profit before tax down 6.14% to Rs 617.60 crore.??Share of profit/loss were nil in both the periods.??Extraordinary items were decreased to Rs -31.45 crore.??Provision for tax was expense of Rs 125.44 crore, compared to Rs 127.23 crore.??Effective tax rate was 21.40% compared to 19.67%.Minority interest was nil in both the periods.??Net profit attributable to owners of the company decreased 11.35% to Rs 460.71 crore.??Equity capital stood at Rs 140.66 crore as of 31 March 2022 to Rs 140.66 crore as of 31 March 2021.??Per share face Value remained same at Rs 10.00.??Promoters stake was 75.00% as of 31 March 2022 ,compared to 75.00% as of 31 March 2021 .??Cash flow from operating activities increased to Rs 741.55 crore for year ended March 2022 from Rs 621.48 crore for year ended March 2021.??Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 529.03 crore, compared to Rs 375.07 crore during the year ended March 2021.??Other Highlights In Q1 FY23, Aftermarket sales from Indian operations rose 53.8% to Rs 96.3 crore on YoY basis.
Management Comments :
Mr. Anurang Jain, Managing? Director of the Company said: Compared to Q1 of last year, two-wheeler sales volumes have grown 37.2% in Q1FY23. While growth in number of CVs and PVs sold was also very strong at 100% and 38% respectively, the growth in three-wheeler sales numbers was tepid at 7%. Sale of higher-cc two-wheelers was impacted by semiconductor shortages. Endurance standalone revenues for Q1FY23 rose 39.9% compared to the last year. Our topline benefited from higher volumes and elevated metal prices, while mix had an adverse effect. The geo-political situation and Russia`s stance vis-a-vis energy supply to Western Europe has severely affected the economy there. While inflation has affected demand, the supply side has also faced challenges for OEMs in terms of procuring critical parts. During Q1FY23, only 2. 74 million new cars were registered in the EU and UK. This reflects a 16.4% YOY drop and a sharp 33.8% drop compared to Q1FY20 which was the pre-pandemic sales level. Our European business turnover in Euro terms fell 1.9% YOY. Normalised for the impact of higher aluminium prices, our topline saw a YOY fall of 6.9%. In Europe, electricity tariffs increased to 3 times and gas prices to 4.5 times over last year`s level, severely impacting our margins. Unanticipated and impactful changes in the macro-environment is now a way of life for most businesses. Our focus, therefore, is to derisk through customer acquisition, product portfolio expansion, being present in multiple vehicle segments including higher cc motorcycles and strengthening our presence in the Aftermarket. During Q1 of FY23, our factories in India and Europe did not face any government mandated lockdowns. Employee well-being is a key focus area for us, and several initiatives have been undertaken to ensure their health and safety. The Company has a very positive outlook based on its recent acquisitions and new business wins including for electric vehicles, both in India and Europe.??

Endurance Technologies : Consolidated Results

? Quarter ended Year ended Particulars 202206 202106 Var.(%) 202203 202103 Var.(%) Net Sales (including other operating income) 2,113.83 1,693.67 24.81 7,549.14 6,547.02 15.31 OPM (%) 11.34 14.43 -308 bps 12.78 15.89 -311 bps OP 239.77 244.32 -1.86 964.64 1,040.22 -7.27 Other Inc. 4.68 12.69 -63.12 41.04 30.71 33.64 PBIDT 244.45 257.01 -4.89 1,005.68 1,070.93 -6.09 Interest 1.92 1.46 31.51 6.35 13.76 -53.85 PBDT 242.53 255.55 -5.09 999.33 1,057.17 -5.47 Depreciation 99.15 98.27 0.90 381.73 399.14 -4.36 PBT 143.38 157.28 -8.84 617.6 658.03 -6.14 Share of Profit/(Loss) from Associates 0 0 – 0 0 – PBT before EO 143.38 157.28 -8.84 617.6 658.03 -6.14 EO Income -10.29 -31.45 67.28 -31.45 -11.23 -180.05 PBT after EO 133.09 125.83 5.77 586.15 646.8 -9.38 Taxation 29.7 29.27 1.47 125.44 127.23 -1.41 PAT 103.39 96.56 7.07 460.71 519.57 -11.33 Minority Interest (MI) 0 0 – 0 -0.14 – Net profit 103.39 96.56 7.07 460.71 519.71 -11.35 P/(L) from discontinued operations net of tax 0 0 – 0 0 – Net profit after discontinued operations 103.39 96.56 7.07 460.71 519.71 -11.35 EPS (Rs)* 7.92 8.58 -7.72 34.51 37.59 -8.19 * 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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