Q2FY19 Result: Setco Automotive profit declines 36 per cent

Setco Automotive reported its results for the quarter ended September 30, 2018. The company's standalone revenue for the quarter came in at Rs. 168.5 crore as against Rs. 134.65 crore in the corresponding quarter last year, registering 25.1 per cent yoy increase.

The EBITDA for the quarter rose by 26.6 per cent yoy to Rs. 23.77 crore as against Rs. 18.78 crore in the corresponding quarter last year, with a corresponding margin expansion of 16 bps. EBITDA margin for the quarter stood at 14.1 per cent.

The PAT for the quarter came in at Rs. 8.8 crore as against Rs. 13.76 crore in the corresponding quarter last year, yoy decline of 36 per cent. This mainly due to decline in other income. Also, jump in effective tax rate from 2 per cent to 43 per cent led to a decline in bottomline.

Setco Automotive is the third largest clutch manufacturing company in the world in terms of volumes. It commands over 85 per cent of the OEM M&HCV clutch market, meets 100 per cent requirement of Tata Motors, Bharat Benz and Eicher Volvo and caters to 65 per cent demand of Ashok Leyland.

On Wednesday, the stock opened at Rs. 36.05 per share and made an intraday high of 36.30. At 12:55, the stock was trading around Rs. 35.10, on the BSE.