Sterling Tools June qtr profit jumps 36% to Rs Rs 13 crore

Mumbai: Auto component maker Sterling Tools Ltd on Thursday reported a 36.4 per cent jump in its consolidated Profit After Tax (PAT) at Rs 13.1 crore for the quarter ended June 30.

The city-based manufacturer of automotive fasteners and a supplier of Motor Control Units (MCUs), had posted a consolidated PAT of Rs 9.6 crore in the first quarter of FY23, as per a company statement.

Total consolidated revenue for the quarter stood at Rs 222.8 crore, up 27.6 per over Rs 174.6 crore topline delivered in the same quarter last fiscal, it said.

"Overall auto-industry growth has been tepid and segments like commercial vehicles and tractors have witnessed de-growth. However, we have reported a revenue growth of 7.4 per cent YoY in our fasteners business," said Atul Aggarwal, Whole-Time Director at Sterling Tools Limited.

The EV industry witnessed a growth of 77 per cent during the quarter, and the company has reported a staggering growth of 135 per cent in our EV component segment on a YoY basis, he said.

The company's EV business is expanding rapidly and revenue has nearly doubled in Q1FY24 over the corresponding quarter last year, Agarwal said, adding, "We remain optimistic about our plans for FY24 both for fasteners and EV component business."

Sterling Tools manufactures high tensile and premier cold forged high-tensile fasteners catering to the passenger cars, two-wheelers, commercial vehicles, agri-equipment and construction equipment segments, among others.

Besides, the company has also ventured into sectors such as electric vehicles to ensure robust value creation for our stakeholders, as per the statement.

Sterling Tools' client portfolio comprises original equipment manufacturers (OEMs) in the domestic market and international markets including the US, Europe, South America and the Middle East, it stated.