1 day Ago
Suprajit Engineering expects double-digit revenue growth in 2024-25 financial year, driven by strong performance in its domestic market, which accounts for 50% of its business. The company has a positive outlook on the global business due to new contracts despite the automotive segment there remaining largely stagnant. The company is targeting 12-13% profit margins, said Founder and Chairman K Ajith Kumar Rai.
He said the Controls Division, which accounts for 47% of business, is expected to grow by 7-8% by the end of the year. Suprajit recently acquired a 40-million-euro business, which will boost its revenue. However, it will take some time for this acquisition to become earnings before interest, taxes, depreciation, and amortisation (EBITDA) positive.
Also Read | Suprajit Engineering's automotive business doing well globally with big contract wins Earlier in September, BMW announced a reduction in its FY24 guidance due to sluggish demand in key markets such as China. BMW is not alone in this; several other global original equipment manufacturers (OEMs) have also adjusted their forecasts for the year. Also Read | BMW Guidance Cut: Here is how much Indian Automakers are exposed to the German giant Rai believes as interest rates ease in the US and Europe, the situation is expected to improve in a year.
However, it may take a year to two before the full impact of lower rates is visible, he said. He said the struggle is more intense for smaller competitors while strong, valuable suppliers like them are gaining market share. A consolidation is happening in the industry, and they are benefiting from it.
This is contributing to their growth and improving their margin profile. “The automotive industry, per se, is in a tough wicket, at least for another year, as I see it in the global market,” Rai added. The market capitalisation of Suprajit Engineering is around ₹ 7,362.
19 crore. Its shares have gained close to 27% in the past year. For the entire interview, watch the accompanying video Catch all the latest updates from the stock market here.
