Suprajit Engineering Limited — Investor Meet, 20-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Suprajit Engineering reported consolidated revenue of INR 782 crores for Q3 FY25, reflecting an 8% increase year-over-year. The operational EBITDA for the same quarter surged to INR 111 crores, marking a remarkable 28% growth. Standalone revenue for the nine months ending December 2024 reached INR 1,283 crores, up 14% from INR 1,124 crores. The company maintained a total debt level of INR 627 crores and held cash reserves of INR 276 crores.

**Future Outlook and Growth Drivers:** Management indicated a focus on operational excellence and restructuring efforts, especially within the Controls Division, which achieved a record EBITDA margin of 11.8%. They noted significant growth in Indian cable exports, up 35%, and highlighted successful new contracts in the electronics and braking products sectors, particularly for electric vehicles (EVs).

**Order Book and Operational Updates:** The order book remains strong with new contracts driving revenue in various divisions. Despite challenges, certain plants, including those in Mexico and Hungary, have shown improvement.

**Analyst Q&A Insights:** Analysts raised several inquiries, particularly around profitability and margin sustainability. Management reassured attendees that the recent margin increase is expected to continue, attributing it to improved operational efficiency and favorable contract negotiations.

**Market or Regulatory Updates:** Discussion touched on geopolitical impacts and evolving tariff situations. The strategic positioning of operations, especially in Morocco, was deemed advantageous for addressing U.S. market demands amid potential tariffs.

**Strategic Focus Areas:** The company is concentrating on enhancing cost efficiency through better supplier relationships and automation. There is an ongoing drive for innovation, particularly in electronics, which should align well with global market trends.

**Investor Insight:** Given the demonstrated financial resilience, growth potential in key segments, and management's strategic clarity, maintaining a 'buy' stance appears favorable, contingent upon continued execution of the turnaround strategies and management's focus on operational excellence.