S.J.S. Enterprises Limited — Q3 FY25 earnings call

Call held 5 Feb 2025

Management summary

SJS Enterprises delivered a strong Q3 FY25, outperforming industry growth in the automotive segment, particularly passenger vehicles. The company reported robust revenue and profit growth, driven by strategic initiatives and operational efficiencies. Management highlighted significant new business wins, capacity expansion plans, and a positive outlook for exports and new product segments like cover glass, despite some short-term softness in export markets.

Highlights

  • Consolidated revenue grew 11.2% Y-o-Y to INR 1,785.6 million in Q3 FY25.

  • EBITDA increased 16.9% Y-o-Y to INR 482 million, with margins at 26.6% (up 102 bps Y-o-Y).

  • PAT grew 32.9% Y-o-Y to INR 277.1 million, with margins at 15.5% (up 253 bps Y-o-Y).

  • Automotive business grew 15.4% Y-o-Y, outperforming the industry growth of 7.1%.

  • Passenger vehicle business saw a strong 22.6% Y-o-Y growth.

  • Exports for 9 months FY25 grew 20.3% Y-o-Y to INR 421.6 million.

  • Walter Pack India products contributed 27% to consolidated revenue in Q3 FY25.

  • Strong operational cash flows of INR 1,263.1 million and free cash flow of INR 1,003 million for 9 months FY25.

Key financials

  1. Consolidated Revenue 1,785.6 Mn +11.2%YoY
  2. EBITDA 482 Mn +16.9%YoY
  3. EBITDA Margin 26.6%
  4. PAT 277.1 Mn +32.9%YoY
  5. PAT Margin 15.5%
  6. ROCE 25.9%
  7. ROE 17.4%

What they filed

Q1 FY27: revenue up 24.3%, net profit up 111.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue193 179 201 210 242 +25%244 +36%260 +29%261 +24%
EBITDA50 45 51 56 68 +36%71 +58%75 +47%75 +34%
Net profit29 28 34 35 43 +48%45 +61%49 +44%74 +111%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Automotive Business
    15.4% Y-o-Y Growth
  • Domestic Sales
    12.3% Y-o-Y Growth
  • Passenger Vehicle Business
    22.6% Y-o-Y Growth
  • Exports (Q3 FY25)
    115 Mn Value6.4% Share of Consolidated Sales0% Y-o-Y Growth
  • Exports (9 Months FY25)
    421.6 Mn Value20.3% Y-o-Y Growth7.5% Share of Total Revenue
  • Walter Pack India Products
    27% Share of Consolidated Revenue
  • Exotech (9 Months FY25)
    25.5% Y-o-Y Growth
  • Walter Pack (9 Months FY25)
    20.5% Y-o-Y Growth
  • 2-Wheeler Sales (Q3 FY25)
    8.4% Y-o-Y Growth

Guidance & targets

Capex

  • Chrome Plating and Painting Capacity Expansion Capex · ongoing · High confidence INR 100 crores
    company has incurred a capex of close to INR 100 crores for chrome plating and painting in Pune

    — Sanjay Thapar, CEO & Executive Director

  • Cover Glass Facility Development Capex · ongoing · High confidence INR 40 crores
    another INR 40 crores for the cover glass facility at Hosur.

    — Sanjay Thapar, CEO & Executive Director

Exports

  • Share of Consolidated Sales Exports · FY28 · High confidence 14% to 15%
    our ambition is to increase the share of exports in our consolidated revenue. We are actively working towards achieving an export target of 14% to 15% of consolidated sales by FY28

    — Sanjay Thapar, CEO & Executive Director

Capacity

  • Cover Glass Plant Readiness Capacity · this year (FY26) · High confidence September, October
    So that plant should be ready somewhere by September, October of this year.

    — Sanjay Thapar, CEO & Executive Director

  • Cover Glass Plant Stream Start Capacity · end of FY26 · High confidence end of FY26
    So this plant will come into stream maybe towards the end of FY26.

    — Sanjay Thapar, CEO & Executive Director

Order Fulfillment

  • Stellantis Supply Start Order Fulfillment · July 2025 · High confidence July next year
    Yes, Stellantis supply should start from July next year.

    — Sanjay Thapar, CEO & Executive Director

  • Whirlpool Dishwasher Plant Supply Start Order Fulfillment · Q4 FY25 · High confidence immediately / next quarter
    So we should start immediately. So I think in 1 quarter, next quarter, we should be able to start supplies.

    — Sanjay Thapar, CEO & Executive Director

Asset Turnover

  • Cover Glass Asset Turnover Asset Turnover · peak level · Medium confidence 2.5 to 3 times
    And if I talk about the asset turnover, at a peak level, we're estimating 2.5 to 3 times.

    — Mahendra Naredi, Chief Financial Officer

Market Penetration

  • IME Penetration Increase in India Market Penetration · next 2 to 3 years · Medium confidence increase
    I think it is a matter of time between the next 2 to 3 years, you would see IME penetration starting to increase in India.

    — Sanjay Thapar, CEO & Executive Director

Integration

  • Walter Pack Integration Completion Integration · end of the year (FY25) · Medium confidence clear
    So we are still in the stages of integration, but we hope that by the end of the year, the integration part should be clear.

    — Sanjay Thapar, CEO & Executive Director

Risks & concerns

  • Soft market conditions and political uncertainties in Europe and North America impacting exports

    medium

    Sales have been lower in exports primarily because of soft market conditions in Europe and North America and political uncertainties.

    Management acknowledged

  • Lower-than-expected volumes from Tata Motors for Walter Pack products

    medium

    The volume that Tata Motors has not been as well as they promised, leading to a 'lull for the moment' for Walter Pack.

    Management acknowledged

  • Q3 being a cyclically lower quarter due to new model changes and plant shutdowns

    low

    Q3 is typically a lower sales quarter due to new model changes and plant shutdowns, especially in export markets.

    Management acknowledged

Areas of evasion (1)

  • specific financial details of new orders (e.g., Whirlpool order quantum/run rate)

Q&A highlights

3 direct
Q-o-Q growth for Walter Pack India (WPI) and Exotech Direct
But the important point, I would like to add to what Mahendra just said, quarter-to-quarter, depending on the model mix, depending on the offtake of the customer, as I said, demand, because of supply float in the market, was lower in some cases. But the important operating number you should look at is the 9-month number for these companies. So Walter Pack has grown very strongly, close to about 20.5% and Exotech has grown at about 25%, 26%.

Analyst questioned negative Q-o-Q growth for key acquired/growth segments; management clarified by emphasizing strong 9-month Y-o-Y growth and Q3 seasonality.

Asked by Ajox Frederick

Competition and differentiation for the new cover glass plant in India Direct
Two things. So cover glass is basically as the word says glass and then a key part to this is the printing that is done on the cover glass. So, at SJS, we are more than close to 35 years of expertise in printing on parts, which are literally right under the drivers' nose. So we are making dials, and we are exporting dials across the world. So the people who will make these displays are people who are already buying dials from us.

Analyst asked about competition for the new cover glass plant; management highlighted their core expertise in printing and existing customer relationships as key differentiators.

Asked by Jyoti Singh

Impact of Chinese brands and geopolitical dynamics on global market opportunities Direct
No. So we have a new president in the North American market who is a notorious friend or not a friend with the country that you mentioned. So the idea is that, look, at our end, we can't control the geopolitical dynamics of what plays out. But what we can do is that what can we do with our own capability and our own relationship with the customers. So, we continue to do that very strongly. And companies realize that they need to diversify supply chains.

Analyst raised a critical macro-level concern about Chinese competition in global markets; management acknowledged the geopolitical context but emphasized their competitive advantages and the 'China +1' trend benefiting them.

Asked by Prateek Giri

2 min read 6 chapters

Detailed narrative

Q3 FY25 Financial Performance Highlights

SJS Enterprises reported a strong Q3 FY25, with consolidated revenue growing 11.2% Y-o-Y to INR 1,785.6 million. EBITDA increased by 16.9% Y-o-Y to INR 482 million, expanding margins by 102 bps to 26.6%. Net Profit (PAT) saw a significant 32.9% Y-o-Y growth, reaching INR 277.1 million, with PAT margins improving by 253 bps to 15.5%. The company also highlighted robust cash flow generation, with 9-month FY25 operational cash flows at INR 1,263.1 million and free cash flow at INR 1,003 million.

Automotive Segment Outperformance and Growth Drivers

The automotive business demonstrated strong momentum, growing 15.4% Y-o-Y, significantly surpassing the industry's 7.1% production volume growth. This was primarily driven by the passenger vehicle (PV) segment, which grew 22.6% Y-o-Y. Key wins with customers like Mahindra (for their new EV range) and supplies to Maruti Suzuki for the new Dzire contributed to this outperformance. Domestic sales overall grew 12.3% Y-o-Y.

Export Strategy and New Business Wins

Exports remain a key focus, with a target to increase their share of consolidated sales to 14-15% by FY28. For 9 months FY25, exports grew 20.3% Y-o-Y to INR 421.6 million. The company secured large global orders from Stellantis (an 8-year program starting July 2025) and Whirlpool (sole supplier for a North American dishwasher plant starting Q4 FY25). While Q3 FY25 exports were flat Y-o-Y at INR 115 million due to soft market conditions in Europe and North America, management is optimistic about future growth from these new wins.

Capacity Expansion and New Product Development (Cover Glass)

SJS is investing significantly in capacity expansion, with INR 100 crores allocated for chrome plating and painting in Pune and INR 40 crores for a new cover glass manufacturing facility in Hosur. The cover glass plant is expected to be ready by September/October 2025 and operational by the end of FY26. Management views cover glass as a high-potential segment, currently imported into India, and expects an asset turnover of 2.5 to 3 times at peak levels, leveraging their 35+ years of printing expertise.

Walter Pack India Integration and Performance

Walter Pack India products contributed 27% to the consolidated revenue in Q3 FY25. For the 9 months FY25, Walter Pack grew strongly at 20.5% Y-o-Y. The integration of Walter Pack into SJS is ongoing and is expected to be completed by the end of FY25. New customer acquisitions for Walter Pack, including Mahindra and Volkswagen, are expected to drive future growth, balancing out lower-than-expected volumes from Tata Motors.

In-Moulded Electronics (IME) and Premiumization

Premiumization remains a key growth driver, with the company actively developing In-Moulded Electronics (IME) parts. Prototypes have been provided to OEMs, and management anticipates IME penetration to increase in India over the next 2 to 3 years. This aligns with the trend of larger displays and advanced aesthetic and functional products in the automotive and consumer durable segments.

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