India’s Suprajit lifts group margin as its standalone margin narrows
Consolidated revenue at India’s Suprajit Engineering increased in the July–September quarter, with the group’s operational earnings margin before interest, tax, depreciation and amortisation rising to 12.2 per cent. Its standalone margin moved the other way, falling to 15.7 per cent. The Indian manufacturer’s results show differences across cable, electronics and lighting operations, while net debt fell between March and September.
Economics & Markets··Evening
Group revenue rises in the September quarter
Suprajit Engineering, an Indian manufacturer of cables and other vehicle components, reported higher consolidated revenue for July–September, the second quarter of its fiscal year. Group revenue rose from 9,410 million Indian rupees a year earlier to 11,351 million rupees. The company’s operational earnings before interest, tax, depreciation and amortisation increased from 1,092 million rupees to 1,384 million rupees, with margin rising from 11.6 per cent to 12.2 per cent.[1], [2]
Standalone margin moves in the opposite direction
Standalone revenue, which excludes the group companies, increased from 4,874 million rupees to 5,647 million rupees. Operational earnings rose from 847 million rupees to 889 million rupees, but margin fell from 17.4 per cent to 15.7 per cent. The company-defined operational measure excludes non-operating income and expenses and foreign-exchange movements. Prior-period figures in the consolidated comparison were regrouped.[1]
Electronics margin falls as net debt declines
The electronics division’s revenue reached 618 million rupees, while its margin fell from 13.4 per cent to 8.4 per cent. Management cited volatile component costs and delays in customer price revisions. The global cable division’s margin improved from 7.4 per cent to 10.1 per cent, and lighting margin rose from 12.6 per cent to 14.4 per cent. Between March-end and September-end, net debt fell from 4,485 million rupees to 3,714 million rupees.[1]
