Capitaline

Results 08-Nov-22

Analysis

Endurance Technologies

NP down 1.38%

For the quarter ended sept 2022, consolidated Net sales (including other operating income) of Endurance Technologies has increased 25.06% to Rs 2360.63 crore compared to quarter ended sept 2021. Operating profit margin has declined from 13.77% to 11.51%, leading to 4.47% rise in operating profit to Rs 271.60 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 58.41% to 61.36%. Purchase of finished goods cost rose from 0.51% to 0.99%. Employee cost decreased from 8.66% to 7.37%. Other expenses rose from 18.75% to 18.79%.

Other income rose 2.80% to Rs 8.43 crore. PBIDT rose 4.41% to Rs 280.03 crore. Provision for interest rose 239.44% to Rs 6.11 crore. Loan funds rose to Rs 651.41 crore as of 30 September 2022 from Rs 551.04 crore as of 30 September 2021. Inventories rose to Rs 832.95 crore as of 30 September 2022 from Rs 719.74 crore as of 30 September 2021. Sundry debtors were higher at Rs 1,166.05 crore as of 30 September 2022 compared to Rs 941.79 crore as of 30 September 2021. Cash and bank balance rose to Rs 445.33 crore as of 30 September 2022 from Rs 320.05 crore as of 30 September 2021. Investments declined from Rs 584.64 crore as of 30 September 2021 to Rs 491.06 crore as of 30 September 2022.

PBDT rose 2.83% to Rs 273.92 crore. Provision for depreciation rose 5.62% to Rs 99.27 crore. Fixed assets increased to Rs 2,695.49 crore as of 30 September 2022 from Rs 2,469.17 crore as of 30 September 2021. Intangible assets increased from Rs 247.76 crore to Rs 368.72 crore.

Profit before tax grew 1.31% to Rs 174.65 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 43.16 crore, compared to Rs 39.07 crore. Effective tax rate was 24.71% compared to 22.66%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 1.38% to Rs 131.49 crore.

Equity capital stood at Rs 140.66 crore as of 30 September 2022 to Rs 140.66 crore as of 30 September 2021. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 75.00% as of 30 September 2022 ,compared to 75.00% as of 30 September 2021 .

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Endurance Technologies has increased 24.94% to Rs 4474.46 crore.

Operating profit margin has declined from 14.08% to 11.43%, leading to 1.40% rise in operating profit to Rs 511.35 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 56.11% to 60.76%. Purchase of finished goods cost rose from 1.16% to 1.33%. Employee cost decreased from 9.81% to 7.93%. Other expenses fell from 19.15% to 18.75%.

Other income fell 37.24% to Rs 13.11 crore. PBIDT fell 0.14% to Rs 524.46 crore. Provision for interest rose 146.01% to Rs 8.02 crore. Loan funds rose to Rs 651.41 crore as of 30 September 2022 from Rs 551.04 crore as of 30 September 2021. Inventories rose to Rs 832.95 crore as of 30 September 2022 from Rs 719.74 crore as of 30 September 2021. Sundry debtors were higher at Rs 1,166.05 crore as of 30 September 2022 compared to Rs 941.79 crore as of 30 September 2021. Cash and bank balance rose to Rs 445.33 crore as of 30 September 2022 from Rs 320.05 crore as of 30 September 2021. Investments declined from Rs 584.64 crore as of 30 September 2021 to Rs 491.06 crore as of 30 September 2022.

PBDT fell 1.05% to Rs 516.44 crore. Provision for depreciation rose 3.20% to Rs 198.41 crore. Fixed assets increased to Rs 2,695.49 crore as of 30 September 2022 from Rs 2,469.17 crore as of 30 September 2021. Intangible assets increased from Rs 247.76 crore to Rs 368.72 crore.

Profit before tax down 3.53% to Rs 318.03 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 72.86 crore, compared to Rs 68.34 crore. Effective tax rate was 23.68% compared to 22.92%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 2.17% to Rs 234.88 crore.

Equity capital stood at Rs 140.66 crore as of 30 September 2022 to Rs 140.66 crore as of 30 September 2021. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 75.00% as of 30 September 2022 ,compared to 75.00% as of 30 September 2021 .

Cash flow from operating activities decreased to Rs 243.06 crore for YTD ended September 2022 from Rs 383.69 crore for YTD ended September 2021. Cash flow used in acquiring fixed assets during the YTD ended September 2022 stood at Rs 243.09 crore, compared to Rs 268.23 crore during the YTD ended September 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 2,658.32 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 175.68 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 Q2 FY23, Aftermarket sales from Indian operations stood at Rs 200.7 crore compared to Rs 172.7 crore in the corresponding period of last year, despite key export markets facing economic challenges.

Management Comments :
Mr. Anurang Jain, Managing Director of the Company said: "On a YOY basis, Indian two-wheeler sales volumes in Q2FY23 have grown by 7.4o/o. The sales numbers have crossed the 5.5 million vehicles mark for the first time in 7 quafters. Endurance standalone revenues for Q2FY23 rose 26.90/o compared to the last year. Our topline benefited from elevated metal prices, and higher volumes due to industry numbers and our capacity additions. EU and UK industry numbers grew only 0.4o/o on a weak base of 2.6m new car registrations. This reflects a sharp 2\o/o drop compared to 3.6m registrations in Q2FY20, which was the pre-pandemic level. Our European business turnover in Euro terms rose 25.9olo YOY. Normalised for the impact of higher aluminium prices, our topline saw a YOY increase of 19.30lo. The quarter saw further increase in energy prices in Europe, severely impacting our margins. At the staft of the quarter, we concluded acquisition of 51olo stake in Maxwell, with an identified path to acquire 100o/o. With the current order book, order pipeline, technical capabilities and other synergies between Endurance and Maxwell, we are confident of achieving our goals in the embedded electronics space. Our consolidated net worth is now in excess of Rs. 40 billion. Our customers recognise us as a strong participant in their value chain both in terms of technological capability and financial stability, and this has enabled us garner new orders. During H1FY23, new orders won aggregate Rs. 7 billion in India and Euro 25 million in our European business. Consistently booking new orders for different products, from multiple OEMs with end-markets in diverse geographies helps us deliver stable business performance even if specific markets underperform."

Endurance Technologies : Consolidated Results

	Quarter ended			Year to Date			Year ended
Particulars	202209	202109	Var.(%)	202209	202109	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	2,360.63	1,887.55	25.06	4,474.46	3,581.22	24.94	7,549.14	6,547.02	15.31
OPM (%)	11.51	13.77	-227 bps	11.43	14.08	-265 bps	12.78	15.89	-311 bps
OP	271.60	259.99	4.47	511.35	504.31	1.40	964.64	1,040.22	-7.27
Other Inc.	8.43	8.20	2.80	13.11	20.89	-37.24	41.04	30.71	33.64
PBIDT	280.03	268.19	4.41	524.46	525.20	-0.14	1,005.68	1,070.93	-6.09
Interest	6.11	1.80	239.44	8.02	3.26	146.01	6.35	13.76	-53.85
PBDT	273.92	266.39	2.83	516.44	521.94	-1.05	999.33	1,057.17	-5.47
Depreciation	99.27	93.99	5.62	198.41	192.26	3.20	381.73	399.14	-4.36
PBT	174.65	172.40	1.31	318.03	329.68	-3.53	617.6	658.03	-6.14
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	0	0	-
PBT before EO	174.65	172.4	1.31	318.03	329.68	-3.53	617.6	658.03	-6.14
EO Income	0	0	-	-10.29	-31.45	67.28	-31.45	-11.23	-180.05
PBT after EO	174.65	172.4	1.31	307.74	298.23	3.19	586.15	646.8	-9.38
Taxation	43.16	39.07	10.47	72.86	68.34	6.61	125.44	127.23	-1.41
PAT	131.49	133.33	-1.38	234.88	229.89	2.17	460.71	519.57	-11.33
Minority Interest (MI)	0	0	-	0	0	-	0	-0.14	-
Net profit	131.49	133.33	-1.38	234.88	229.89	2.17	460.71	519.71	-11.35
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	131.49	133.33	-1.38	234.88	229.89	2.17	460.71	519.71	-11.35
EPS (Rs)*	9.35	9.48	-1.38	17.26	18.07	-4.49	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

Previous News

Endurance Technologies receives revision in credit ratings from CRISIL
( Corporate News - 27-Jan-21 19:56 )

Endurance Technologies to declare Quarterly Result
( Corporate News - 27-Mar-24 09:22 )

Endurance Technologies standalone net profit rises 10.49% in the December 2016 quarter
( Results - Announcements 08-Feb-17 17:32 )

Endurance Technologies commences commercial production of its new product
( Corporate News - 06-Feb-24 15:36 )

Volumes soar at Endurance Technologies Ltd counter
( Hot Pursuit - 04-Dec-19 14:30 )

Endurance Technologies introduces VRS for its employees at Chakan
( Corporate News - 03-May-21 17:09 )

Endurance Technologies to table results
( Corporate News - 27-Mar-24 10:30 )

Volumes spurt at Max India Ltd counter
( Hot Pursuit - 09-Aug-19 14:30 )

Endurance Technologies consolidated net profit rises 13.55% in the December 2016 quarter
( Results - Announcements 08-Feb-17 17:59 )

Endurance Technologies
( Results - Analysis 18-May-23 10:46 )

Endurance Technologies consolidated net profit rises 17.55% in the September 2023 quarter
( Results - Announcements 09-Nov-23 07:40 )