Capitaline

Results 18-May-23

Analysis

Endurance Technologies

NP flat at Rs 136.47 crore

For the quarter ended March 2023, consolidated Net sales (including other operating income) of Endurance Technologies has increased 7.48% to Rs 2234.34 crore compared to quarter ended Mar 2022. Operating profit margin has jumped from 12.37% to 12.77%, leading to 10.99% rise in operating profit to Rs 285.40 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 59.33% to 58.31%. Purchase of finished goods cost fell from 0.96% to 0.54%. Employee cost increased from 8.12% to 9.47%. Other expenses fell from 19.19% to 18.75%.

Other income rose 64.20% to Rs 20.82 crore. PBIDT rose 13.49% to Rs 306.22 crore. Provision for interest rose 369.41% to Rs 7.98 crore. Loan funds rose to Rs 514.76 crore as of 31 March 2023 from Rs 429.61 crore as of 31 March 2022. Inventories rose to Rs 820.58 crore as of 31 March 2023 from Rs 701.14 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,162.03 crore as of 31 March 2023 compared to Rs 970.37 crore as of 31 March 2022. Cash and bank balance declined from Rs 402.64 crore as of 31 March 2022 to Rs 287.71 crore as of 31 March 2023. Investments rose to Rs 671.84 crore as of 31 March 2023 from Rs 486.78 crore as of 31 March 2022 .

PBDT rose 11.24% to Rs 298.24 crore. Provision for depreciation rose 23.90% to Rs 121.56 crore. Fixed assets increased to Rs 2,923.74 crore as of 31 March 2023 from Rs 2,658.32 crore as of 31 March 2022. Intangible assets increased from Rs 175.68 crore to Rs 390.02 crore.

Profit before tax grew 3.93% to Rs 176.68 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 40.21 crore, compared to Rs 33.81 crore. Effective tax rate was 22.76% compared to 19.89%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 0.21% to Rs 136.47 crore.

Equity capital stood at Rs 140.66 crore as of 31 March 2023 to Rs 140.66 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 75.00% as of 31 March 2023 ,compared to 75.00% as of 31 March 2022 .

Full year results analysis.

Net sales (including other operating income) of Endurance Technologies has increased 16.62% to Rs 8804.05 crore. Operating profit margin has declined from 12.78% to 11.77%, leading to 7.43% rise in operating profit to Rs 1,036.28 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 57.93% to 59.79%. Purchase of finished goods cost rose from 1.13% to 1.17%. Employee cost decreased from 9.08% to 8.58%. Other expenses fell from 19.23% to 18.82%.

Other income rose 10.70% to Rs 45.43 crore. PBIDT rose 7.56% to Rs 1081.71 crore. Provision for interest rose 224.09% to Rs 20.58 crore. Loan funds rose to Rs 514.76 crore as of 31 March 2023 from Rs 429.61 crore as of 31 March 2022. Inventories rose to Rs 820.58 crore as of 31 March 2023 from Rs 701.14 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,162.03 crore as of 31 March 2023 compared to Rs 970.37 crore as of 31 March 2022. Cash and bank balance declined from Rs 402.64 crore as of 31 March 2022 to Rs 287.71 crore as of 31 March 2023. Investments rose to Rs 671.84 crore as of 31 March 2023 from Rs 486.78 crore as of 31 March 2022 .

PBDT rose 6.18% to Rs 1061.13 crore. Provision for depreciation rose 10.44% to Rs 421.58 crore. Fixed assets increased to Rs 2,923.74 crore as of 31 March 2023 from Rs 2,658.32 crore as of 31 March 2022. Intangible assets increased from Rs 175.68 crore to Rs 390.02 crore.

Profit before tax grew 3.55% to Rs 639.55 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 149.68 crore, compared to Rs 125.44 crore. Effective tax rate was 23.79% compared to 21.40%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 4.10% to Rs 479.58 crore.

Equity capital stood at Rs 140.66 crore as of 31 March 2023 to Rs 140.66 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 75.00% as of 31 March 2023 ,compared to 75.00% as of 31 March 2022 .

Cash flow from operating activities increased to Rs 861.99 crore for year ended March 2023 from Rs 741.55 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 636.26 crore, compared to Rs 529.03 crore during the year ended March 2022.

Other Highlights

Board Recommended dividend of Rs 7 per equity share of face value of Rs 10 each (70%), for the financial year 2022-23.

In Q4 FY23, Aftermarket sales from Indian operations stood at Rs 431.1 crore compared to Rs 418.9 crore in the corresponding period of last year, despite key export markets facing economic challenges.

In FY23, India contributed 76.6% of total consolidated revenue, Europe 23.2% and Maxwell 0.2%.

Company Won 15 EV programs from 11 customers in FY23, as against 35 ICE programs.

In FY23, Motorcycle contributed 56.2% of total revenue, Scooter 7.4%, 3W 10.5%, four wheelers 27.3% and others 1%.

Management Comments :
Mr. Anurang Jain, Managing Director of the Company said: "Durinq Q4, the aggregate two-wheeler sales volumes for Indian OEMs witnessed a YOY drop of 4.1 %, primarily due to significantly lower exports. Our India business recorded a topline growth of 6.1 %. For the full year also, we have continued our trend of `better than industry` growth. While two-wheeler industry sales volumes grew 8.3% over FY22, our topline grew 18.8%. While our topline benefited from pass-through of elevated metal prices, a large part of the growth came from higher volumes produced and sold from our plants, particularly in brakes, alloy wheels, machined castings and front forks. 1"he EU new car registration numbers for the full year grew by 2.9% over the previous year, but degrew by 24% from the pre-pandemic base of FY19. Our European business turnover in Euro terms rose 12.7% YOY. Normalised for the impact of higher aluminium prices, the increase stood at 9.8%. Our European business EBIDTA margins improved to 14.5% in FY23 from 14.1 % in FY22 despite high energy costs, which were partially compensated by customers and government support. A number of measures taken by us in FY23 will serve us well, as we continue to pursue our objective of profitable growth. During the year, we have made acquisitions in key areas of embedded electronics and European aftermarkets. We have booked new orders aggregating Rs. 9.4 billion from OEMs (excluding Bajaj Auto) in ETL India, Rs. 1.3 billion in Maxwell and Euro 84 million in Europe. In the EV space, we have booked orders of Rs. 3.8 billion in ETL India, Rs. 1.3 billion in Maxwell and Euro 41 million in Europe during the year. Additionally, our European plants have booked orders of Euro 27 million for hybrid vehicles. We have set up facilities to augment manufacturing capacities for existing and new products, and also for backward integration. The Board of Directors has reviewed the Company`s financial performance for the fiscal year and has recommended a dividend of Rs. 7 per equity share of face value of Rs. 10 each."

Endurance Technologies : Consolidated Results

	Quarter ended			Year ended
Particulars	202303	202203	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	2,234.34	2,078.80	7.48	8,804.05	7,549.14	16.62
OPM (%)	12.77	12.37	40 bps	11.77	12.78	-101 bps
OP	285.40	257.13	10.99	1,036.28	964.64	7.43
Other Inc.	20.82	12.68	64.20	45.43	41.04	10.70
PBIDT	306.22	269.81	13.49	1,081.71	1,005.68	7.56
Interest	7.98	1.70	369.41	20.58	6.35	224.09
PBDT	298.24	268.11	11.24	1,061.13	999.33	6.18
Depreciation	121.56	98.11	23.90	421.58	381.73	10.44
PBT	176.68	170.00	3.93	639.55	617.6	3.55
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	176.68	170	3.93	639.55	617.6	3.55
EO Income	0	0	-	-10.29	-31.45	67.28
PBT after EO	176.68	170	3.93	629.26	586.15	7.35
Taxation	40.21	33.81	18.93	149.68	125.44	19.32
PAT	136.47	136.19	0.21	479.58	460.71	4.10
Minority Interest (MI)	0	0	-	0	0	-
Net profit	136.47	136.19	0.21	479.58	460.71	4.10
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	136.47	136.19	0.21	479.58	460.71	4.10
EPS (Rs)*	9.70	9.68	0.21	34.65	34.51	0.41

* 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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