Suprajit Engg spurts after strong quarterly update

Suprajit Engineering jumped 5.96% to Rs 199.20 after the company said that operational financial performance of Q2 is expected to be normal despite COVID-19 challenges.

The company's Q2 group sales were over Rs 450 crore, higher by about 15% compared to Q2 of last year. Q2 group sales were the highest ever recorded in the history of the company (previous high was Rs 430 crore in Q4 2018-19), the company said in a BSE filing made during market hours today.

The automotive cable and halogen lamp maker said that all divisions, except Trifa and Luxlite, had record sales. Indian aftermarket had the highest quarterly sales with a growth in excess of 30% compared to Q2 of last year while the domestic cable division had recorded a year-on-year (YoY) growth of 13%.

Phoenix Lamps Division (with its subsidiaries - Luxlite & Trifa) had a growth of 26% compared to Q2 of last year. The SENA division had a growth of 10%, compared to Q2 of last year.

The salary cuts in the range of 5% to 30% based on graded scale from May onwards, have now been reverted to normal, it added.

With respect to third quarter and COVID-19, the company said that October is expected to be strong based on customer schedules across the group. Post festival season, November onwards, outlook for the balance year is still not very clear.

COVID‐19 challenges continue along with supply chain issues and availability of manpower. Company is taking every possible effective steps to test, contain, quarantine and protect Team Suprajit in its endeavor to meet operational challenges of enhanced customer requirements, the auto ancillary added.

Suprajit is India's largest automotive cable and halogen lamp maker with an annual global capacity of 300 million cables and 110 million halogen lamps. Suprajit's customer list includes most Indian automotive majors. It also exports to many marquee global customers.

Powered by Capital Market - Live News