Q1 2027 Sansera Engineering Limited Earnings Call Transcript
Key Points
- Record non-auto segment sales of INR1,998 million, up 129.9% year-on-year, driven by a threefold increase in ADS revenue.
- ADS order backlog surged to INR57.5 billion, with a major new order from a semiconductor equipment manufacturer expected to generate about $75 million in annual business.
- EBITDA grew 48% year-on-year to INR1,961 million, with margins expanding 200 basis points to 19.2%.
- Strong demand visibility across domestic two-wheeler and passenger vehicle segments, with expectations of high-teens to 20% top-line growth for FY27.
- Strategic capacity expansions, including a new surface treatment facility and an 80,000 sq ft hangar, are on track to support future growth and enhance in-house capabilities.
- Auto ICE segment delivered healthy 20.8% year-on-year growth, with record quarterly performance in passenger vehicles, commercial vehicles, and scooters.
- Management remains confident in achieving INR8,000-9,000 crore revenue by FY31, backed by a strong order pipeline and organic growth plans.
- Provisions of INR126 million for U.S. import duty tariffs and INR169 million for a litigation settlement weighed on quarterly profitability.
- Material cost inflation, particularly in aluminum and consumables, has not yet been fully passed through to customers, pressuring margins.
- Supply chain stress due to strong demand is causing capacity constraints and delays in raw material availability.
- ADS revenue ramp-up will be gradual, with significant revenues from new orders not expected until calendar year 2027, limiting near-term contribution.
- Management refrained from providing an updated CapEx guidance, citing ongoing evaluation, which may create uncertainty for investors.
- The company's growth outlook is partly dependent on sustained AI-driven demand for semiconductors, which carries cyclical risk.
- Despite strong Q1 performance, management maintains a conservative margin guidance of around 19%, suggesting potential for margin normalization.
(audio in progress) Exports saw some moderation in the last year, in this year, we are seeing some traction in our international business getting back to a normal growth trajectory. A positive trend in the industry, alongside the rising tide of outsourcing, creates a strong foundation for sustained growth in our auto business on both domestic and export sides.
Now looking into our segmental performance. The performance was broad-based across all the key segments. The non-auto segment delivered its highest-ever quarterly sales of INR1,998 million, registering an impressive 129.9% year-on-year growth.
As a result, its contribution increased to 20.8% of our overall sales. Within the non-auto segment, our ADS business remained the primary growth driver. The revenue increasing by more than three times year-on-year and standing at INR1,454 million. Moving to our auto tech-agnostic and XEV business, the segment achieved its highest-ever quarterly sales of INR1,316 million, growing at 22.2%
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
