Setco Automotive Limited reported robust financial results for the nine months ending December 31, 2024. During this period, the company achieved record revenues of INR 499.8 crore, marking a 9.6% Y-o-Y growth. The results also highlighted significant operational and profitability improvements.
For Q3 FY25, Setco's revenue from operations stood at INR 177.3 crore, an increase of 7.4% compared to INR 165.1 crore in Q3 FY24. The growth was attributed to strong demand for Setco’s high-quality MHCV products and its strategic efforts to meet customer needs. The EBITDA for Q3 FY25 rose to INR 29.4 crore, reflecting a 19% Y-o-Y increase. The EBITDA margin also improved to 16.6%, up from 15.0% in the same quarter last year, driven by operational efficiencies and a favourable segment mix.
Over the nine-month period, the EBITDA increased to INR 68.6 crore, a sharp 36.0% rise from INR 52.8 crore in 9M FY24. The EBITDA margin for the nine months rose to 13.7%, compared to 11.6% in the same period last year.
Setco's subsidiary, Lava Cast, achieved operational milestones, including its highest quarterly tonnage since 2019 and record-low rejection rates during Q3 FY25. These achievements were the result of advanced production processes and rigorous quality checks. Additionally, the restructuring of Lava Cast’s debt and the subsequent withdrawal of insolvency proceedings further underscored its financial turnaround.
The company also introduced new allied products, such as centre bearings, and expanded its customer engagement through initiatives like the ‘Drive Rewards’ programme via the Setco Connect app, which has onboarded over 20,000 mechanics and retailers.
Harish Sheth, Chairman and Managing Director, Setco Automotive, highlighted the strong demand for Setco's products, the improved sales mix, and operational efficiency as key drivers of profitability. He also emphasised the company’s focus on expanding its market presence and broadening its product portfolio to sustain this momentum.
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