SJS Enterprises soars over 12% to hit record high on impressive Q1 results

Shares of SJS Enterprises surged over 12 percent to reach a new high on Friday, August 2, following the announcement of the company's impressive financial results for the quarter ended June 2024 (Q1FY25). The decorative aesthetics company reported a significant year-on-year (YoY) profit after tax (PAT) increase of 56.6 percent, amounting to ₹28.24 crore, compared to ₹18.03 crore in Q1FY24. This robust performance was attributed to healthy operational execution and strategic initiatives.

The company also demonstrated a remarkable 60.9 percent YoY revenue growth, reaching ₹188.6 crore, up from ₹117.25 crore in the corresponding period last year. The company experienced a 17 percent YoY increase in the automotive market (2W+PV), primarily driven by the WPI acquisition and strong business growth in the passenger vehicle (PV) and consumer segments, as well as in exports.

This marks the 19th consecutive quarter in which SJS outperformed, with a YoY growth of 43.1 percent in the automotive business compared to a 17 percent YoY growth in the overall automotive industry (2W+PV) production volumes. The stock rose as much as 12.2 percent to a record high of ₹958.25 in intraday trading, having surged over 73 percent from its 52-week low of ₹552.90, recorded on January 24, 2024. Year-to-date, the stock has gained around 48 percent, with a 31 percent increase over the past year.

On the operational front, earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 60.8 percent YoY to ₹50.5 crore, with margins improving to 26.6 percent from 26.1 percent in the previous year, driven by a significant enhancement in SJS's standalone margins.

KA Joseph, Managing Director & Co-Founder of SJS Enterprises, expressed satisfaction with the Q1 FY25 performance, emphasising the company's strategy of expanding its global footprint and increasing wallet share with key clients. The strategic acquisition of WPI and growth in the automotive and consumer durables segments were highlighted as key drivers of the 60.9 percent YoY growth.

Joseph also announced the addition of Dixon Technologies as a new client, which is expected to open new avenues for growth in the coming quarters. The company aims to introduce innovative, next-generation products and technologies that meet the evolving needs of its global customers, solidifying its position as a premier provider of aesthetic solutions.

The company also noted that both Exotech and WPI acquisitions have complemented SJS's portfolio, enabling cross-selling opportunities and strengthening the company's order book outlook. Walter Pack India (WPI) is seen as a strategic addition that positions SJS for long-term growth and profitability.

SJS stated its ambition to achieve revenue growth exceeding 1.5 times that of the underlying industry growth while maintaining robust EBITDA margins. This growth is anticipated to be driven by promising prospects in the two-wheeler, passenger vehicle, and consumer segments.

Sanjay Thapar, Executive Director & CEO of SJS Enterprises, emphasised the company's focus on international markets and export business opportunities. Thapar expressed confidence in meeting global standards and optimism about the growth prospects for the business. SJS aims to become a one-stop solutions provider for all aesthetic products, with a focus on premiumization, enabling it to surpass industry performance in the future.

The inclusion of Dixon Technologies as a new customer opens significant opportunities in the consumer durables segment. SJS continues to win new business with major customer accounts, including Stellantis, Mahindra & Mahindra (M&M), Tata, TVS, Honda, Yamaha, Continental, Bajaj Auto, Royal Enfield, Foxconn, and Syrma, among others.

SJS Enterprises remains a leading player in the Indian decorative aesthetics industry, offering a comprehensive range of products across traditional and premium segments.