The Board of Directors of Shanthi Gears Limited (SGL), a subsidiary of Tube Investments of India Limited (TII), met today and approved the financial results for the quarter and nine months ended 31st December 2023.
The Company continues to focus on 4 key priorities of Revenue growth, Profitability, Return on Invested Capital and Free Cash Flow. SGL delivered strong performance on all these 4 priorities:
- Revenue of Rs 125.5 crore in the quarter with a 9 per cent growth over Q3 of previous year. For nine months ended 31st December 2023, Revenue grew by 19 per cent.
- The Profit Before Tax (PBT) for the quarter up by 2 per cent at Rs 24 crore as against Rs 23.4 crore in Q3 of previous year. The drop in PBT growth is mainly on account of product mix. For nine months ended 31st December 2023, PBT grew by 22 per cent.
- Focus on cost optimisation and lower Invested Capital enabled improvement in Return on Invested Capital (ROIC) to 53 per cent during Q3. For nine months ended 31st December 2023, ROIC is at 59 per cent.
- The Company generated Free Cash Flow (FCF) of Rs 8.1 Crores during Q3 as against Rs 6.5 crore during Q3 of previous year. For nine months ended 31st December 2023, FCF grew by 75 per cent.
During the quarter, the Company booked orders for Rs 142 crore with a 19 per cent growth over Q3 of previous year. For nine months ended 31st December 2023, order book grew by 37 per cent.
The Board declared an interim dividend of Rs 3 per share (Face Value Rs 1 per share) for the financial year 2023-24.
