Setco Automotive Limited, a leading manufacturer of MHCV clutches and premium truck products, announced its unaudited financial results for the quarter and half year ended September 30, 2024, during its board meeting on November 14, 2024. The company delivered robust growth in revenue and profitability, driven by increased volumes and a focus on cost optimization.
For Q2FY25, Setco Automotive reported revenue from operations of INR 159.9 crore, a 10% increase compared to INR 145.7 crore in Q2FY24, attributed to higher volumes in the Original Equipment Supplier (OES) and aftermarket segments. The company's EBITDA doubled year-over-year to INR 26 crore, reflecting a growth of 104%, supported by improved sales and cost-saving measures. The EBITDA margin stood at 16.2%, showcasing enhanced operational efficiency.
For the first half of FY25, revenue from operations reached INR 322.4 crore, an 11% increase from INR 290.9 crore in the same period last year. The EBITDA for H1 FY25 rose by 72% year-over-year to INR 46.3 crore, with the EBITDA margin improving to 14.4%. This growth was primarily driven by increased aftermarket volumes, the launch of Setco Allied products such as Centre Bearings, and sustained cost-saving initiatives.
Business Highlights
The company successfully introduced Setco Allied products, including Centre Bearings, enhancing its product portfolio. The Drive Rewards programme was launched via the Setco Connect app, onboarding over 20,000 mechanics and retailers. Lava Cast, a subsidiary of the company, achieved a positive EBITDA in H1FY25, supported by the successful restructuring of its debt, leading to the withdrawal of an insolvency petition.
Harish Sheth, Chairman and Managing Director of Setco Automotive, said, 'Our performance reflects strong demand across OES and Independent Aftermarket channels, where we have exceeded expectations. Cost optimisation efforts have substantially improved our operational margins. These achievements underscore our commitment to operational excellence and sustainable growth. We remain optimistic about maintaining this momentum in the quarters ahead.'
With a focus on innovation, customer engagement, and operational efficiency, Setco Automotive is poised to strengthen its position in the automotive components market, capitalizing on new opportunities and continued demand across key segments.
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