Subros Limited — PPTs, 22-05-2025: Investor Presentation

**Financial Highlights:**

Subros posted revenue of Rs. 3,367.57 Cr for FY 2024-25, up 9.7% YoY led by volume growth and new business starts. EBITDA jumped 27.6% to Rs. 343.12 Cr, supported by cost reductions and process improvements. PBT rose 44.6% to Rs. 203.46 Cr, while PAT grew 54.0% to Rs. 150.40 Cr, aided by a lower tax rate. EBITDA margin expanded to 10.2% from 8.8%, and PAT margin improved to 4.5% from 3.2%. Material costs eased as a percentage of sales due to commodity softness and better product mix. Finance costs decreased slightly, reflecting optimized working capital and low-cost debt.

**Strategic Initiatives & Growth Drivers:**

Capacity expansion continues with new projects going live, including a growing EV business pipeline. The focus remains on passenger vehicle thermal products, which grew 19%. Investments in technology upgrades aim to meet emission and efficiency standards and target green mobility solutions like EV, SHEV, and CNG. Cost optimization and operational excellence remain key, supported by internal efficiency gains and plant expansions.

**Business Developments:**

New operations started at the Karsanpura plant, along with two other model launches in Q4. Additional orders secured in truck AC and EV segments, with production ramp-up planned for next year.

**Market Position & Competitive Advantage:**

Subros retains India’s largest share (~42-43%) in passenger car and truck AC markets. Its competitive edge comes from deep vertical integration, advanced technology developed in partnership with Denso Japan, and a pan-India manufacturing footprint. Strengths include product reliability, energy efficiency, and cost competitiveness.

**Investor Implications:**

Robust topline and profit growth driven by volume gains and new orders indicate positive growth potential. Exposure to EV and commercial vehicle segments provides diversification benefits. Execution risks around capacity scaling and tech adaptation exist but are tempered by strong operational discipline. Investors should track EV project progress and margin trends closely.