Shivalik Bimetal Controls Results: Latest Quarterly Results & Analysis

Industrial Goods company Shivalik Bimetal Controls announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• PAT surged by 34.07% to Rs 25.33 crore, with PAT margin up by 551 basis points to 22.66%, reflecting enhanced profitability and better operational efficiency.

FY24 Financial Highlights:

• Total income rose by 6.94% to Rs 449.40 crore, showcasing resilient revenue generation despite moderated North Atlantic demand.
• Recommended a final dividend of 50% (Rs 1.00 per equity share) for FY24, in addition to the interim dividend of Rs 0.70 per share already paid, aggregating Rs 1.70 per share for the year.
• Asia (excluding India): Achieved a notable increase of 32.84% YoY in Shunt Resistor sales.
• India: Growth rose to 31.69% YoY in Thermostatic Bimetal/Trimetal sales, effectively offsetting the sluggish demand from the Americas.

S.S. Sandhu, Chairman, commented, "Over the past five years, we have built a solid foundation for growth and profitability, and I am confident that our strategic initiatives will continue to drive success in the years to come. Our focus on expanding domestic demand, coupled with the pursuit of global partnerships, particularly in the silver contacts segment, positions us favourably for future success. We expect robust growth in the domestic market to continue, and we are prepared to take advantage of the anticipated rebound in the USA. Strategically, we remain focused on expanding our product lines and leveraging our research and development capabilities to drive forward integration. Our financial strength ensures that we remain a debt-free company and are ready for any inorganic expansion should a strong opportunity present itself."

CFO Rajeev Ranjan added, "Shivalik is well-positioned for long-term growth, underpinned by strong market tailwinds, a robust balance sheet, and solid financial performance. The Company also benefitted from a Production Linked Incentive (PLI) scheme, adding ~Rs 8 crore in cash and ~Rs 12 crore as other income for a significantly raised PAT. Our consistent earnings growth, highlighted by the 43.98% CAGR in EPS, demonstrates our commitment to delivering substantial shareholder value. Looking ahead, we anticipate steady growth recovery in the Atlantic region and continued robust demand from Asia. During FY2024, we formalized major contracts, foreshadowing a promising business pipeline. Additionally, the recent addition of a property provides sufficient headroom for our forward integration and expansion of assembly lines."

Result PDF

Industrial Goods company Shivalik Bimetal Controls announced Q2FY24 & H1FY24 results:

• Standalone Q2FY24:
  • Revenue increased by 7.18% to Rs 112.40 crore compared to Q2FY23.
  • EBITDA increased by 9.82% to Rs 27.82 crore compared to Q2FY23.
  • EBITDA margin increased by 60 basis points to 24.75% compared to Q2FY23.
  • Profit after tax increased by 5.85% to Rs 26.37 crore compared to Q2FY23.
  • PAT margin decreased by 19 bps to 17.34% compared to Q2FY23.
• Standalone H1FY24:
  • Revenue increased by 11.31% to Rs 225.47 crore compared to H1FY23.
  • EBITDA increased by 14.60% to Rs 56.81 crore compared to H1FY23.
  • EBITDA margin increased by 72 bps to 25.20% compared to H1FY23.
  • Profit after tax increased by 11.92% to Rs 39.72 crore compared to H1FY23.
  • PAT margin increased by 10 bps to 17.62% compared to H1FY23.

Rajeev Ranjan, CFO, commented on the Company’s financial performance, “Our growth percentages are a result of our control mechanisms for operating leverage. We maintain a consistent growth trajectory, showcasing a steady growth rate for Q2FY24 where our strong control mechanisms for operating leverage have enabled us to maintain healthy EBIDTA and profit margins reinforcing financial stability. As we complete Q2 and approach the third quarter, a pronounced upswing in market conditions is also expected as we have achieved a 25% growth in the domestic market. Although global headwinds may persist into the next calendar year, we are anticipating that the 10% to 40% growth range will return post-Q4FY24. In addition, we are in advanced discussions in finalisation of volume contracts spanning over the next 2-3 years with some renowned Industry names, signaling a promising growth trajectory for the Company in the medium-term.”

Result PDF

Other Industrial Goods company Shivalik Bimetal Controls announced Q1FY24 results:

• Revenue from Operations: Rs 113.07 crore, 15.74% YoY growth.
• Gross Profit: Rs 56.31 crore, 14.97% YoY growth.
• EBIDTA as a % of Revenue: Rs 28.99 crore, 19.60% YoY growth.
• Profit After Tax (PAT): Rs 20.23 crore, 18.23% YoY growth.

CFO, Rajeev Ranjan, commented, “We delivered a strong performance for Q1FY24, with revenue rising to Rs 113.07 crore, our highest quarterly number in history. In the face of dynamic market conditions globally, our sustained focus on operational efficiency and R&D has resulted in a 19.60% growth in EBIDTA, reaching Rs 28.99 crore for the period. Our Shunt division saw a healthy 8.97% growth, while our Bimetal division witnessed 22.45% growth, in line with the global shift towards electrification. Our Profit After Tax (PAT) witnessed an increase of 18.23%, reaching our highest quarterly figure of Rs 20.23 crore. In conclusion, our Q1FY24 performance, bolstered by India's economic growth and burgeoning domestic market, positions us to embrace the future with a steadfast focus on operational efficiency and cutting-edge innovation.”

Chairman of Shivalik Bimetal Controls, S.S. Sandhu, also shared, “Looking into the near future, Shivalik's shunt resistors will seamlessly integrate into the fabric of the nation's sustainable energy ecosystems. As India embarks on large deployments of smart metering for reducing Aggregate Transmission & Commercial (AT&C) losses and optimizing operational efficiency at the DISCOM level, Shivalik's well-established technology is primed to enable this. Our shunt resistors are part of the backbone of smart metering technology and energy management systems, providing the precision and reliability required for efficient energy usage. As India accelerates its smart meter deployment to achieve electrical energy security, we are proud to be a key player in providing critical components, contributing to the country's electrification renaissance."

Result PDF

Other Industrial Goods company Shivalik Bimetal Controls announced Q4FY23 & FY23 results:

• Total Income Growth: A remarkable 29.70% increase in total income for FY23, and a notable 23.30% increase in total income for Q4FY23 compared to Q4FY22, showcasing the Company's strong revenue generation capabilities.
• EBITDA Surge: An impressive 41.94% growth in EBITDA for FY23, and a significant 39.44% growth in EBITDA for Q4FY23 compared to Q4FY22, indicating considerable improvement in operational efficiency.
• PAT Expansion: A robust 39.60% increase in profit after tax (PAT) for FY23, and a substantial 40.97% increase in profit after tax (PAT) for Q4FY23 compared to Q4FY22, highlighting the Company's ability to translate operational improvements into bottom-line results.

"We are pleased to announce outstanding year-end financial results, with robust growth across each product group," said Mr. S.S. Sandhu, Chairman. "Our team has worked tirelessly to sustain our industry leadership, and deliver quality products that meet our customer’s expectations. We are experiencing significant demand for our both products. Underscoring our DNA for engineering and technical excellence, we continue our commitment to providing high-quality, reliable products to our OEMs and investing in innovation to maintain our pole position.”

Mr. Rajeev Ranjan, Chief Financial Officer, added, "Our strong financial year end has a YoY increase of 31.50% in gross profit margin and a significant YoY growth of 41.94% in EBITDA to reach Rs. 104.37 crore for FY23. This performance clearly reflects our innate ability to generate strong operating cash flows and maintain financial and operational discipline. We have leveraged our long-standing relationships and initiated new commercial partnerships to drive growth across our product segments. We are confident in sustaining this momentum and driving long-term value for our shareholders.”

Result PDF

Shivalik Bimetal Controls announced Q3FY23 results:

• Q3FY23:
  • Total revenue for Q3FY23 grew by 22.02% YoY; up by 32.14% YoY for 9MFY23
  • EBITDA for 9MFY23 grew by 42.63% YoY to reach Rs 77.36 crore
  • Profit after tax for 9MFY23 increased by 38.84% YoY to reach Rs 53.74 crore

“Our sustained growth in the 9MFY23 period is a testament to persistently surging market demand and new commercial relationships initiated with leading OEMs. While we are successfully leveraging our longstanding relationships, we are also aggressively adding new quality clients that position us in new high-growth opportunities, such as EV (Electric Vehicles) and smart metering, products necessary for an environmentally sustainable future,” said Mr. S. S. Sandhu, Chairman. “This growth strategy is a result of consistent investment in our intellectual capital and our commitment to excellence in quality and reliability for our global OEMs,” he added.

Mr. Rajeev Ranjan, Chief Financial Officer, added, “Our total revenue for Q3FY23 grew by 22.02% YoY on the back of robust organic volume growth with existing longstanding customers and the addition of multiple new technical approvals with leading global OEMs. Over Q3FY23, we successfully onboarded many new market-leading clients, and as we translate pilot approval volumes to scalable production volumes, we expect to sustain our continuing growth incline going forward. Our 9MFY23 results also demonstrate our ability to deliver sustained quality earnings. Our YoY widening EBITDA margin by 184 basis points to 24.95% for 9MFY23 reflects our ability to produce strong operational performance, and thus a sustained PAT margin exceeding the mid-teens for the 9MFY23 period.”

Result PDF

General industrials company Shivalik Bimetal Controls announced Q2FY23 results:

• Total Income for Q2FY23 grew by 39.7% YoY on account of robust volume growth and higher realizations. Total Income for H1FY23 grew by 40.1% YoY to Rs. 208.17 crore.
• Q2FY23 EBITDA as a percentage of Total Income grew by 203 bps YoY to 26.5%, while H1FY23 EBITDA margin grew by 251 bps YoY to 26.51%.
• Profit after Tax for Q2FY23 increased by 44.19% YoY to Rs. 18.37 crore.
• The sales value of Shunt Resistors for H1FY23 grew by 33.23% YoY to reach Rs. 100.47 crore, while the sales value of Bimetals grew by 43.74% YoY to reach Rs. 102.03 crore.

“Our strong overall performance in Q2FY23 demonstrates sustained solid growth that truly reflects the growing demand of the marketplace,” said Mr. N.S. Ghumman, Managing Director. “Investing in intellectual capital and continuing to deliver high value is at the forefront of our growth strategy. In addition, the growing demand in high-growth segments such as EVs and smart metering, are paving the way for expanding our client base, while also offering more customisation for our existing clients with whom we enjoy long-term relationships,” he added.

Mr. Rajeev Ranjan, Chief Financial Officer, added “We are well positioned for a steep growth incline and are focusing on new and established clients’ evolving needs in sync with the technological trends of today and tomorrow. Our H1FY23 results are more reflective of our strengths in delivering sustained earnings. Furthermore, being under-leveraged with low debt levels give us ample headroom to raise capital to support our growth. This also places us in an ideal position to take advantage of new high-growth opportunities in the future.”

Result PDF

Industrial Goods firm Shivalik Bimetal Controls announced Q1FY23 Result :

• Shivalik Bimetal posts solid Q1FY23 top and bottom lines YoY, on the back of resurging global demand
• Revenues grew by 40.43% YoY to Rs. 99.94 crore, on account of robust volume growth over last year and higher realization on consolidated basis
• Shunt Resistors comprised 48.63% of total revenues and grew by 34.24% YoY
• Thermostatic bimetal/trimetal strips comprised 49.09% of total revenues and grew by 44.08% YoY
• Operating Margin stood at 26.51% increasing by 303 bps YoY, led by higher operating leverage and increased sales volume
• PAT grew by 53.07% YoY to reach Rs. 17.11 crore, driven by high growth in revenue from operations and product mix
• Rating has been upgraded from “CRISIL A-/Stable” to “CRISIL A /Stable” dated May 31, 2022.

“Our strong overall performance in Q1FY23 amidst a tentative global economic environment is a testament to our innate resilience as an organization and our global industry-leading capabilities,” said Mr. S. S. Sandhu, Director & Chairman. “The recent Covid disruption is leading all organisations to bolster their intellectual capitals. We too are taking strategic steps in investing in and rewarding our people to ensure long-term tenures and to better empower them to meet evolving market opportunities for the Company. This will help us sustain our journey for quality growth well into the future,” he added

Mr. Rajeev Ranjan, Chief Financial Officer, added “We are strengthening the quality of our earnings by optimising various cost levers and driving efficiency in our operations. We are also focusing on our established clients’ evolving needs in line with market trends, by making sure we remain technologically relevant. Higher volumes, coupled with tighter cost management has resulted into 53% YoY increase in our bottom line.”

Result PDF

Highlights:

• Companies CAGR grew by 12.95% from the base financial year 2016-17; 
• EBIDTA Margin grew by 46.69% YoY; 
• Net Profit grew by 76.57% to Rs. 2,406.58 Lakhs QoQ led by continued cost control and market demand; 
• Credit Rating reaffirmed at CRISIL A- /stable outlook (long term) and CRISIL A2 (short term) by CRISIL Ratings despite lockdown induced contraction in the manufacturing industry;
• Robust Balance Sheet provides capacity for strategic objectives

Result PDF