Suprajit Engineering shares jump 14%, announces buyback at ₹750 per share

The company said it will buy back 15,00,000 equity shares at a price of ₹750 amounting to ₹112.5 crore from all eligible shareholders. This buyback is expected to be completed before September 30, 2024. Notably, the buyback price stands at a significant premium to the current market price of about ₹589 per share.

Total revenue rose 7.62% YoY to ₹745.35 crore during the quarter while earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 16.14% to ₹86.36 crore. The company’s long term debt has come down to ₹581.40 crore for the quarter-ended June 2024 compared to ₹623.90 crore in the quarter-ended March 2024.

Suprajit’s controls division’s operating revenue grew by 3.3% and EBITDA rose by 16.4%. The segment’s EBITDA margins crossed the 8% threshold for the first time, the firm stated while adding that order wins continue to remain strong in the automotive division, despite flat growth in the global automotive industry. The business has started securing new non-automotive contracts for the coming years, it added.

Meanwhile, Suprajit Europe (SEU) continues to bag large new contracts for Suprajit Automotive (SAL). The firm noted that growth in Hungary remains muted due to the geopolitical situation in Europe.

For SCD – North America, Wescon witnessed a good margin recovery during the quarter, due to various restructuring measures. For SCD - India (exports), SAL continues to win significant large contracts with good margins in the automotive segment, in multiple geographies.

During the quarter, Suprajit has signed a share and asset purchase agreement (SAPA) for the acquisition of Stahlschmidt Group Companies (SCS), out of insolvency proceedings in Germany. The firm said that SCS is a light duty cable-maker with a marquee customer base and brings valuable low-cost manufacturing capabilities in Morocco, a strong German engineering and sales team, and China exports through Canada.

Shares of the firm have risen by over 43% since the beginning of the year. The stock has gained over 43% in the last one year.