Capitaline

Sales of Coil spiring & Forging items segment has gone up 51.41% to Rs 44.14 crore (accounting for 99.98% of total sales). Sales of Roofing Sheets segment has gone up 256.00% to Rs 0.01 crore (accounting for 0.02% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 70.72% to Rs 8.05 crore. PBIT of Coil spiring & Forging items segment rose 70.71% to Rs 8.04 crore (accounting for 99.98% of total PBIT). PBIT of Roofing Sheets segment rose 366.67% to Rs 0.00 crore (accounting for 0.02% of total PBIT).
PBIT margin of Coil spiring & Forging items segment rose from 16.17% to 18.23%. PBIT margin of Roofing Sheets segment rose from 12.00% to 15.73%. Overall PBIT margin rose from 16.17% to 18.23%.

Full year results analysis

Standalone net sales (including other operating income) of Frontier Springs for the fiscal ended Mar 2024 has increased 26.13% to Rs 135.41 crore. Operating profit margin has jumped from 11.79% to 15.34%, leading to 64.06% rise in operating profit to Rs 20.77 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 50.44% to 48.87%. Employee cost decreased from 3.46% to 3.38%. Other expenses fell from 34.68% to 32.32%. Other income fell 4.69% to Rs 0.61 crore. PBIDT rose 60.75% to Rs 21.38 crore. Provision for interest fell 39.39% to Rs 0.2 crore. PBDT rose 63.30% to Rs 21.18 crore. Provision for depreciation rose 15.94% to Rs 3.71 crore. Profit before tax grew 78.81% to Rs 17.47 crore. Provision for tax was expense of Rs 4.48 crore, compared to Rs 2.53 crore. Effective tax rate was 25.64% compared to 25.90%. Profit after tax rose 79.42% to Rs 12.99 crore.

Sales of Coil spiring & Forging items segment has gone up 26.13% to Rs 135.41 crore (accounting for 99.99% of total sales). Sales of Roofing Sheets segment has gone up 256.00% to Rs 0.01 crore (accounting for 0.01% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 39.28% to Rs 23.08 crore. PBIT of Coil spiring & Forging items segment rose 39.28% to Rs 23.08 crore (accounting for 99.99% of total PBIT). PBIT of Roofing Sheets segment rose 366.67% to Rs 0.00 crore (accounting for 0.01% of total PBIT).

PBIT margin of Coil spiring & Forging items segment rose from 15.44% to 17.05%. PBIT margin of Roofing Sheets segment rose from 12.00% to 15.73%. Overall PBIT margin rose from 15.44% to 17.05%.

Management Comment

Commenting on the performance, Kapil Bhatia, Managing Director, said: We are pleased to report a strong performance for FY24, marked by significant growth across our product segments. Both coil springs and air springs have been key contributors to our robust performance during the year. Our coil springs segment has seen substantial demand, and we have secured significant orders that set a strong foundation for FY25. The air springs segment has also performed well, with a notable order from the Indian Railways. This order is progressing on schedule, and we anticipate continued strong demand in the coming quarters. furthermore, we are on track with the installation of our 6-ton hammer, which is expected to begin commercial production by mid-Q2FY25. This new capacity will enable us to produce higher tonnage forgings and cater to new industries, enhancing our product offerings and margins. We expect this investment to start contributing to our performance from Q3FY25. Looking ahead, we are confident in our ability to achieve ₹250 crores in sales for FY25. The strong start to the year, coupled with robust order book, positions us well for sustained growth. The ongoing modernisation and expansion of the Indian Railways present significant opportunities, and we are well-prepared to capitalise on these developments.

Equity capital stood at Rs 3.96 crore as of 31 March 2024 to Rs 3.96 crore as of 31 March 2023. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 51.76% as of 31 March 2024 ,compared to 51.76% as of 31 March 2023 .

Loan funds declined from Rs 4.62 crore as of 31 March 2023 to Rs 3.72 crore as of 31 March 2024. Inventories rose to Rs 30.91 crore as of 31 March 2024 from Rs 30.28 crore as of 31 March 2023. Sundry debtors were higher at Rs 22.17 crore as of 31 March 2024 compared to Rs 16.22 crore as of 31 March 2023. Cash and bank balance rose to Rs 2.28 crore as of 31 March 2024 from Rs 2.00 crore as of 31 March 2023. Investments rose to Rs 17.98 crore as of 31 March 2024 from Rs 15.48 crore as of 31 March 2023 . Fixed assets increased to Rs 46.73 crore as of 31 March 2024 from Rs 42.73 crore as of 31 March 2023.

Cash flow from operating activities increased to Rs 11.57 crore for year ended March 2024 from Rs 9.62 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 7.82 crore, compared to Rs 8.53 crore during the year ended March 2023.