Setco Automotive Announces Financial Results for Q4 FY24

Setco Automotive, one of India’s largest manufacturers of MHCV clutches and a key supplier in the truck products sector, revealed its audited financial results for the quarter and fiscal year ended March 31, 2024.

In the board meeting held on July 12, 2024, the company reported a consolidated revenue from operations of Rs. 173.8 crore for Q4 FY24, marking an 8.4% increase from Rs. 160.4 crore in Q4 FY23. For FY24, the revenue stood at Rs. 629.7 crore compared to Rs. 545.6 crore in FY23, driven by higher volumes in OEM, robust aftermarket sales, and increased exports.

The company's EBITDA for Q4 FY24 was Rs. 22.1 crore, showing a growth of 7.8% year-on-year, with an EBITDA margin of 12.70%. For FY24, the EBITDA surged to Rs. 72.5 crore from Rs. 40.3 crore in FY23, attributed to enhanced sales, a favorable product mix, and focused cost-saving strategies.

Despite reporting a loss of Rs. 135.1 crore in FY24, an improvement from Rs. 192.3 crore loss in FY23, Setco Automotive remains optimistic about expanding its market share and profitability through strategic initiatives and product diversification efforts.

Commenting on the results, Harish Sheth, Chairman & MD of Setco Automotive Ltd., stated, “Our increased sales are due to greater market share and improved profitability from cost-saving initiatives and a favorable product mix.

We are on track to bolster our market position with OEMs. Our subsidiary, Lava Cast, has successfully renegotiated its terms and achieved positive EBITDA in the second half of FY24."

Read the full Release Here 

Market Reaction 

Following the announcement of Setco Automotive's Q4 FY24 financial results, the market response on the National Stock Exchange (NSE) showed a subdued reaction. On July 12, 2024, Setco's stock (SETCO) opened at ₹15.45, reached a high of ₹15.45, and closed at ₹15.15, with a trading volume of 1,19,757 shares.

This indicates a stable but slightly negative sentiment among investors following the recent financial disclosures.

Watch the NSE Price of the company Here 

Setco Automotive 

Established in 1982, Setco Automotive Ltd. is a prominent manufacturer specializing in Medium and Heavy Commercial Vehicle (M&HCV) clutches and premium truck products. With a diversified product portfolio including brake linings, clutches, flywheels, lubricants, release bearing assemblies, and universal joints.

 Setco operates five manufacturing units. These facilities, supported by advanced Research and Development centers in India and the UK, enable the company to meet diverse customer demands globally.

Setco Automotive serves markets across the US, UK, SAARC nations, and the Middle East, emphasizing innovation through cutting-edge technology and comprehensive product development capabilities.