Setco Automotive reports net profit of Rs 8.1 crore in June quarter after heavy losses
Auto component maker Setco Automotive today reported a net profit of Rs 8.1 crore in the June quarter. The company had reported a net loss of Rs 11.8 crore in the year-ago period.
The city-based auto component maker is the largest manufacturer of clutches for commercial vehicles (CVs) and farm tractors in the country with Tata Motors, Bharat Benz, Ashok Leyland, among others, as its major customers.
"This is our strongest ever Q1 performance, and we expect to continue strong growth with better cost management," said Harish Sheth, chairman and managing director, Setco Automotive.
Strong economic fundamentals on the back of implementation of GST, continue to drive medium and heavy commercial segment growth, he said adding this growth trend is seen for the last four quarters in a row and the growth cycle is expected to continue for the next three to four years.
The company reported an EBITDA margin of 15.1 percent, which is the best for the first quarter in any financial year, the release said.
The company management, witnessing strong business growth, increased its standalone sales growth guidance to 35 percent for FY19, from the earlier guidance of 30 percent, the release added.
"Government's thrust in the rural sector, including higher MSP, and investment in infrastructure augur well for our planned foray into supply of new generation clutches for the farm equipment sector," added Sheth.
Setco has a global presence with four manufacturing facilities, of which two are in the country, and one each in the UK and the US.
Besides, it also has research and development centers in the country and the UK.
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