SJS Enterprises’ shares soared over 12% to a new high on August 2, 2024, after the company posted impressive financial results for the first quarter of FY25. The decorative aesthetics company saw its profit after tax (PAT) rise by 56.6% year-on-year (YoY) to ₹28.24 crore, compared to ₹18.03 crore in Q1FY24. This growth was driven by effective operations and strategic moves.
Revenue for the company also saw a significant increase, growing by 60.9% YoY to ₹188.6 crore from ₹117.25 crore the previous year. The automotive market, particularly the two-wheeler and passenger vehicle segments, showed a 17% YoY growth, fueled by the WPI acquisition and strong business in passenger vehicles and exports.
This quarter marked the 19th consecutive period where SJS outperformed, with the automotive business growing by 43.1% YoY, outpacing the 17% growth in the overall automotive industry. The stock price reached a record ₹958.25 during intraday trading, a 12.2% increase, and has risen 73% from its 52-week low of ₹552.90 recorded in January 2024. So far this year, the stock has gained about 48% and 31% over the past year.
Operationally, the company’s EBITDA rose 60.8% YoY to ₹50.5 crore, with margins improving to 26.6% from 26.1% the previous year. This was due to better standalone margins.
KA Joseph, Managing Director & Co-Founder of SJS Enterprises, was pleased with the Q1 FY25 results, noting the company’s strategy to expand globally and increase its business with key clients. The WPI acquisition and growth in the automotive and consumer durables sectors were major contributors to the 60.9% revenue growth.
Joseph also announced a new client, Dixon Technologies, which is expected to drive further growth. SJS plans to introduce new, advanced products to meet the needs of global customers, aiming to be a top provider of aesthetic solutions.
The acquisitions of Exotech and WPI have strengthened SJS’s product range and opened up cross-selling opportunities. WPI, in particular, is seen as a valuable addition for long-term growth and profitability.
SJS aims to grow its revenue at a rate 1.5 times faster than the industry average while maintaining strong EBITDA margins. The company is optimistic about future prospects in the two-wheeler, passenger vehicle, and consumer segments.
Sanjay Thapar, Executive Director & CEO of SJS Enterprises, highlighted the focus on international markets and exports. Thapar is confident in meeting global standards and expects significant business growth. SJS aims to be a comprehensive provider of aesthetic products, focusing on premium offerings to outperform the industry.
With Dixon Technologies as a new customer, SJS sees significant opportunities in the consumer durables market. The company continues to secure new business with major clients like Stellantis, Mahindra & Mahindra, Tata, TVS, Honda, Yamaha, Continental, Bajaj Auto, Royal Enfield, Foxconn, and Syrma.
SJS Enterprises remains a leader in India’s decorative aesthetics industry, offering a wide range of products across traditional and premium segments.
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