Q3 2025 Sterling Tools Ltd Earnings Call Transcript
Key Points
- Sterling Tools Ltd (BOM:530759) reported a consolidated top line revenue increase of 24.5% year-on-year to INR832 crore for the nine months of FY25, driven by strong performance in the SGEM segment.
- The company has successfully expanded into the energy sector through its subsidiary, Sterling Tech-Mobility Limited, partnering with Zhejiang Meishuo Electric Technology to manufacture latching relays locally.
- Sterling Tools Ltd (BOM:530759) has made significant progress in its new manufacturing facility in Bangalore for HVDC contractors and relays, with production expected to commence in Q2 FY26.
- The company continues to diversify its product offerings, including partnerships to manufacture MCUs for various vehicle segments and magnetic components for India's EV and electronics manufacturing industry.
- Sterling Tools Ltd (BOM:530759) has maintained a strong market presence, with more than 30 active customer programs and a significant market share across light commercial vehicles and three-wheelers.
- The fastener business margins dropped in Q3 FY25 due to one-time business development expenses, impacting the overall profitability for the quarter.
- The company anticipates initial operating losses in its new HVDC business for the first couple of years due to the time required for testing and validation.
- Sterling Tools Ltd (BOM:530759) faces challenges in maintaining revenue growth momentum, with a tough year ahead due to product realignment and customer shifts.
- The company is still in the early stages of developing its own IP for EV components, relying on foreign technology partnerships to enter the market.
- The current capacity utilization for the South plant is around 60%, indicating underutilization and potential inefficiencies in the fastener segment.
Ladies and gentlemen, good day, and welcome to Sterling Tools Limited Q3 and nine-months FY25 earnings conference call. (Operator Instructions)
I now hand the conference over to Mr. Pankaj Gupta, Group CFO. Thank you, and over to you, sir.
Thank you. Good morning, everyone. On behalf of STL Group, we extend a very warm welcome to all of you for this quarter three, nine months FY25 earnings call. I'm joined today by Mr. Atul Aggarwal, our Managing Director; Mr. Jaideep Wadhwa, Director. We uploaded our presentation yesterday, and I hope you had a chance to look at the same.
I'll request Mr. Aggarwal to -- for his opening remarks.
Thank you, Pankaj. Good morning, everybody. Welcome to our call for Q3 and nine months results for FY25. Let me start with a brief overview of the industry. During Q3 FY25, the overall automobile industry witnessed a tepid growth of 3.1% year-on-year against the
| 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
