Capitaline

Results 19-May-22

Analysis

Endurance Technologies

PAT down 17.53%

For the quarter ending March 2022, standalone net sales (including other operating income) of Endurance Technologies has declined 2.78% to Rs 1,554.42 crore compared to quarter ended march 2021.
Operating profit margin has declined from 14.81% to 12.66%, leading to 16.86% decline in operating profit to Rs 196.82 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 63.62% to 65.93%. Purchase of finished goods cost rose from 0.75% to 1.03%. Employee cost decreased from 4.66% to 4.52%. Other expenses fell from 16.15% to 15.95%.

Other income up 261.05% to Rs 9.64 crore. PBIDT fell 13.76% to Rs 206.46 crore. Provision for interest up 20.59% to Rs 0.41 crore. Loan funds declined from Rs 49.49 crore as of 31 March 2021 to Rs 34.30 crore as of 31 March 2022. Inventories rose to Rs 366.68 crore as of 31 March 2022 from Rs 329.53 crore as of 31 March 2021. Sundry debtors were lower at Rs 801.09 crore as of 31 March 2022 compared to Rs 812.51 crore as of 31 March 2021. Cash and bank balance rose to Rs 103.14 crore as of 31 March 2022 from Rs 34.29 crore as of 31 March 2021. Investments rose to Rs 574.36 crore as of 31 March 2022 from Rs 534.84 crore as of 31 March 2021 .

PBDT fell 13.81% to Rs 206.05 crore. Provision for depreciation rose 2.96% to Rs 51.86 crore. Fixed assets increased to Rs 1,592.18 crore as of 31 March 2022 from Rs 1,457.29 crore as of 31 March 2021. Intangible assets increased from Rs 29.83 crore to Rs 61.96 crore.

Profit before tax down 18.29% to Rs 154.19 crore. Provision for tax was expense of Rs 39.46 crore, compared to Rs 49.59 crore. Effective tax rate was 25.59% compared to 26.28%.

Profit after tax fell 17.53% to Rs 114.73 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 .

Full year results analysis

Net sales (including other operating income) of Endurance Technologies has increased 19.36% to Rs 5,697.09 crore. Operating profit margin has declined from 15.33% to 12.79%, leading to 0.40% decline in operating profit to Rs 728.66 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 61.63% to 65.27%. Purchase of finished goods cost rose from 0.93% to 0.94%. Employee cost decreased from 5.95% to 5.06%. Other expenses fell from 16.31% to 16.03%.

Other income up 80% to Rs 24.39 crore. PBIDT rose 1.06% to Rs 753.05 crore. Provision for interest fell 62.08% to Rs 1.82 crore. Loan funds declined from Rs 49.49 crore as of 31 March 2021 to Rs 34.30 crore as of 31 March 2022. Inventories rose to Rs 366.68 crore as of 31 March 2022 from Rs 329.53 crore as of 31 March 2021. Sundry debtors were lower at Rs 801.09 crore as of 31 March 2022 compared to Rs 812.51 crore as of 31 March 2021. Cash and bank balance rose to Rs 103.14 crore as of 31 March 2022 from Rs 34.29 crore as of 31 March 2021. Investments rose to Rs 574.36 crore as of 31 March 2022 from Rs 534.84 crore as of 31 March 2021 .

PBDT rose 1.47% to Rs 751.23 crore. Provision for depreciation rose 0.16% to Rs 203.74 crore. Fixed assets increased to Rs 1,592.18 crore as of 31 March 2022 from Rs 1,457.29 crore as of 31 March 2021. Intangible assets increased from Rs 29.83 crore to Rs 61.96 crore.

Profit before tax grew 1.97% to Rs 547.49 crore. Extraordinary items were decreased to Rs -31.45 crore. Provision for tax was expense of Rs 134.3 crore, compared to Rs 133.5 crore. Effective tax rate was 26.03% compared to 25.39%.

Profit after tax fell 2.67% to Rs 381.74 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 548.92 crore for year ended March 2022 from Rs 296.78 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 357.56 crore, compared to Rs 199.65 crore during the year ended March 2021.

Other Highlights

Board recommended dividend of Rs 6.25 per equity share of face value of Rs 10, each (62.5%), for the financial year 2021-22. The dividend, shall be paid (subject to approval) on or after 30th August, 2022 but before 22"d September, 2022.

Aftermarket sales from Indian operations rose 35.2% to Rs 421.2 crore this year vs. Rs 311.6 crore in the corresponding period of last year.

Management Comments :
Mr. Anurang Jain, Managing Director of the Company said: "The previous fiscal - FY21 had started with a stringent lockdown in Ql and part of Q2. The full year had witnessed lower demand for all kinds of vehicles produced in India, despite significant demand rebound for two-wheelers and passenger vehicles from Q2 to Q4. In FY22, there was a rebound in demand for commercial vehicles, passenger vehicles and three-wheelers. In the case of two-wheelers, while export volumes saw healthy growth, demand in the domestic market was lower than the previous year. Domestic 2W volumes fell 10.9%, leading to an overall volume decline of 2.7%. Volumes of vehicles across segments were impacted by semi-conductor shortages. Endurance standalone revenues for FY22 rose 19.5% compared to the last year. In the EU (including UK), the number of new car registrations in FY22 was lower than last year by 4.9%. The European automotive market has been deeply impacted by semi-conductor shortages, soaring energy prices and other supply chain issues linked to the geo-political situation. In Euro terms, our revenues for Ff22 were higher than last year by 5.1%. Our endeavour is to continue to grow ahead of market and focus on multiple ways to pursue such growth. Apart from intensifying our presence with all OEMs, growing our Aftermarket business and introducing new technologies in our existing products, we also focus upon adding new products to our portfolio. In the recent past, we have broadened our portfolio through technology transfer agreements, acquisitions and internal R&D. We select the new products and technologies based on market trends after careful study of end-user and OEM preferences, government legislation, environmental impact, market size and synergies. During Q4 of FY22, our factories in India and Europe did not face any government mandated lockdowns. We continue to take measures to ensure a safe workplace for our people. The Board of Directors has reviewed the Company`s financial performance for the fiscal year and has recommended a dividend of Rs. 6.25 per equity share of face value of Rs. 10 each."

Endurance Technologies : Standalone Results

	Quarter ended			Year ended
Particulars	202203	202103	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	1,554.42	1,598.85	-2.78	5,697.09	4,773.03	19.36
OPM (%)	12.66	14.81	-214 bps	12.79	15.33	-254 bps
OP	196.82	236.74	-16.86	728.66	731.60	-0.40
Other Inc.	9.64	2.67	261.05	24.39	13.55	80.00
PBIDT	206.46	239.41	-13.76	753.05	745.15	1.06
Interest	0.41	0.34	20.59	1.82	4.8	-62.08
PBDT	206.05	239.07	-13.81	751.23	740.35	1.47
Depreciation	51.86	50.37	2.96	203.74	203.42	0.16
PBT	154.19	188.70	-18.29	547.49	536.93	1.97
PBT before EO	154.19	188.7	-18.29	547.49	536.93	1.97
EO Income	0	0	-	-31.45	-11.23	-180.05
PBT after EO	154.19	188.7	-18.29	516.04	525.7	-1.84
Taxation	39.46	49.59	-20.43	134.3	133.5	0.60
PAT	114.73	139.11	-17.53	381.74	392.2	-2.67
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	114.73	139.11	-17.53	381.74	392.2	-2.67
EPS (Rs)*	8.16	9.89	-17.53	28.79	28.48	1.11

* 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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