Suprajit Engineering advances 10% post September quarter business update
October 5, 2020
Shares of Suprajit Engineering moved higher by 10 per cent to Rs 206.85 on the BSE in the intra-day trade on Monday after the company said its operational financial performance for the July-September quarter (Q2FY21) is expected to be normal despite Covid‐19 challenges. The stock of the auto parts and equipment company was trading close to its 52-week high level of Rs 220, touched on February 1, 2020.
“The company’s Q2 group sales were over Rs 450 crore, higher by about 15 per cent compared to Q2 of last year. The group sales during the reported quarter were the highest ever recorded in the history of the company. The previous high was Rs 430 crore in Q42018‐19,” Suprajit Engineering said in a business update.
All divisions, except Trifa and Luxlite, had record sales. Indian aftermarket had the highest quarterly sales with a growth in excess of 30 per cent year-on-year (YoY) while the domestic cable division had a growth of 13 per cent compared to Q2 of last year, it said.
The company further said that October is expected to be strong based on customer schedules across the group. However, post festival season, November onwards, the outlook for the balance year is still not very clear, it said.
Suprajit is India’s largest automotive cable and halogen lamp maker with an annual global capacity of 300 million cables and 110 million halogen lamps. Suprajit’s customer list includes most Indian automotive majors.
The company said Covid‐19 challenges continue along with supply chain issues and the availability of manpower. It is taking every possible effective steps to test, contain, quarantine, and protect team Suprajit in its endeavor to meet operational challenges of enhanced customer requirements. The salary cuts in the range of 5 per cent to 30 per cent based on graded scale from May onwards have now been reverted to normal, the company said.
At 12:27 pm, the stock was trading 8 per cent higher at Rs 202.50 on the BSE, against a 1 per cent gain in the S&P BSE Sensex. A combined 780,000 equity shares changed hands on the counter on the NSE and BSE.
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