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Results - Analysis

Net down 13% largely on lower other income and near flat sales

Shanthi Gears

25-Apr-2025, 05:58

Standalone net sales (including other operating income) of Shanthi Gears for the quarter ended Mar 2025 has declined 0.28% to Rs 153.21 crore. Operating profit margin has jumped from 17.32% to 20.21%, leading to 16.38% rise in operating profit to Rs 30.97 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.18% to 45.37%. Employee cost increased from 11.40% to 13.21%. Other expenses fell from 23.14% to 20.66%. Other income fell 57.88% to Rs 4.01 crore. PBIDT fell 3.18% to Rs 34.98 crore. Provision for interest remained nil. PBDT fell 3.18% to Rs 34.98 crore. Provision for depreciation down 15.40% to Rs 3.57 crore. Profit before tax down 1.57% to Rs 31.41 crore. Provision for tax was expense of Rs 8.95 crore, compared to Rs 6.23 crore. Effective tax rate was 28.49% compared to 19.52%. Profit after tax fell 12.54% to Rs 22.46 crore.

Full year results analysis

Net sales (including other operating income) of Shanthi Gears has increased 12.79% to Rs 604.62 crore. Operating profit margin has jumped from 18.99% to 21.29%, leading to 26.47% rise in operating profit to Rs 128.73 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.42% to 46.82%. Employee cost decreased from 14.18% to 13.56%. Other expenses fell from 18.61% to 18.25%.

Other income fell 30.39% to Rs 14.66 crore. PBIDT rose 16.72% to Rs 143.39 crore. Provision for interest remained nil. Loan funds remained nil. Inventories declined from Rs 85.23 crore as of 31 March 2024 to Rs 80.40 crore as of 31 March 2025. Sundry debtors were higher at Rs 137.20 crore as of 31 March 2025 compared to Rs 117.96 crore as of 31 March 2024. Cash and bank balance rose to Rs 64.76 crore as of 31 March 2025 from Rs 7.91 crore as of 31 March 2024. Investments rose to Rs 88.49 crore as of 31 March 2025 from Rs 45.31 crore as of 31 March 2024 .

PBDT rose 16.72% to Rs 143.39 crore. Provision for depreciation rose 0.68% to Rs 13.3 crore. Fixed assets increased to Rs 83.61 crore as of 31 March 2025 from Rs 75.56 crore as of 31 March 2024. Intangible assets declined from Rs 0.69 crore to Rs 0.35 crore.

Profit before tax grew 18.65% to Rs 130.09 crore. Provision for tax was expense of Rs 34.06 crore, compared to Rs 27.39 crore. Effective tax rate was 26.18% compared to 24.98%.

Profit after tax rose 16.75% to Rs 96.03 crore.

Dividend

The Board of Directors has recommended a final dividend of Rs.2/- (Rupees Two only) per equity share of Rupee 1/- each (ISIN INE631A01022) for the financial year ended 31st March, 2025 together with the interim dividend of Rs.3/- per share, paid on 26th February, 2025, the total dividend for the financial year 2024-25 works out to Rs.5/- (Rupees Five only) per share. The said final dividend, if approved by the Members at the ensuing AGM, will be paid within 30 days from the date of the AGM (i.e., on or before 27th August, 2025).

Equity capital stood at Rs 7.67 crore as of 31 March 2025 to Rs 7.67 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00.

Promoters' stake was 70.47% as of 31 March 2025, compared to 70.47% as of 31 March 2024 .

Cash flow from operating activities increased to Rs 90.79 crore for year ended March 2025 from Rs 36.38 crore for year ended March 2024. Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 24.35 crore, compared to Rs 20.00 crore during the year ended March 2024.

Shanthi Gears : Standalone Results

	Quarter ended			Year ended
Particulars	202503	202403	Var.(%)	202503	202403	Var.(%)
Net Sales (including other operating income)	153.21	153.64	-0.28	604.62	536.05	12.79
OPM (%)	20.21	17.32	289 bps	21.29	18.99	230 bps
OP	30.97	26.61	16.38	128.73	101.79	26.47
Other Inc.	4.01	9.52	-57.88	14.66	21.06	-30.39
PBIDT	34.98	36.13	-3.18	143.39	122.85	16.72
Interest	0	0	-	0	0	-
PBDT	34.98	36.13	-3.18	143.39	122.85	16.72
Depreciation	3.57	4.22	-15.40	13.3	13.21	0.68
PBT	31.41	31.91	-1.57	130.09	109.64	18.65
PBT before EO	31.41	31.91	-1.57	130.09	109.64	18.65
EO Income	0	0	-	0	0	-
PBT after EO	31.41	31.91	-1.57	130.09	109.64	18.65
Taxation	8.95	6.23	43.66	34.06	27.39	24.35
PAT	22.46	25.68	-12.54	96.03	82.25	16.75
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	22.46	25.68	-12.54	96.03	82.25	16.75
EPS (Rs)*	2.93	3.35	-12.54	12.52	10.72	16.75

* EPS is on current equity of Rs 7.67 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database