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24-May-2018

Setco Automotive

In advanced stage of negotiations with international OEMs


'Setco Automotive held its conference call on 24 May 2018 to discuss its results for the period ended March 2018.

Highlights of the call:

In Q4 sales grew 1% to Rs 175.76 crore. PAT jumped 48% to Rs 15.75 crore.

In FY 2018 sales grew 7% to Rs 524.72 crore. PAT jumped 54% to Rs 28.90 crore.

Q1 FY 2018 was an aberration quarter in Setco history, due to rolling-out of GST & adoption of BSIV norms.

Excluding Q1FY18, it has grown by 21.5% over last 9 months yoy.

Growth would have been much higher, but due to supply constraints aftermarket volume couldn't be realized fully.

Q4FY18 EBITDA margin of 16.4% is the highest in the last 4 years.

Being a vertically integrated clutch manufacturer with its own foundry, complex and machined castings are easily available. A big differentiation between Setco and others is that perhaps Setco is the only company which has its own foundry.

It aims to be the preferred clutch ...



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