Endurance Technologies shares rally 4% after subsidiary acquires Italy-based Ingenia Automation

In a filing to the stock exchanges, on June 1, automotive component manufacturer said that its subsidiary Endurance Overseas Srl, Italy, has acquired 100% stake in Ingenia Automation Srl.

The company mentioned in a release that its subsidiary Endurance Overseas Srl has acquired 100% stake in Ingenia for a consideration of nearly €3.6 million (₹32.44 crore). The total consideration comprises an upfront amount of €2.2 million (₹19.82 crore), a deferred amount of €0.8 million (₹7.2 crore) an earn-out of up to €0.6 million (₹5.40 crore) to be paid after December 31, 2027, upon fulfilment of certain conditions.

Ingenia Automation Srl is engaged in the operation, design, production and installation of industrial automation systems. The company has been the main supplier of automation systems to the Endurance Group.

Ingenia Automation achieved a turnover of €13.2 million (₹118.93 crore) in the financial year ended December 31, 2023. The company reported a Profit-After-Tax (PAT) of €0.4 million (₹3.6 crore) and its net worth stood at €1 million (₹9 crore) for the financial year ended December 31, 2023.

Endurance Technologies released its results for the quarter and financial year ended March 31, 2024, on May 17. The auto ancillary company reported a more than 20% rise in its consolidated revenue from operations for the March quarter at ₹2,711.31 crore compared to ₹2,255.15 crore in the same quarter of the preceding fiscal. The company’s Profit-After-Tax(PAT) for the March quarter grew 54% to ₹210.15 crore compared to ₹136.46 crore on a year-on-year basis.

The auto component manufacturer’s revenue from operations for the March quarter grew nearly 5% from ₹2,588.07 crore in the quarter ended December. Endurance Technologies PAT for the March quarter grew 38% from ₹152.27 crore in the December quarter.

The auto-component maker’s revenue from operations for FY24 grew more than 16% to ₹10,240.87 crore compared to ₹8,804.04 crore in the preceding fiscal. The company’s PAT for FY24 surged nearly 42% to ₹680.48 crore against ₹479.57 crore on a year-on-year basis.

Shares of Endurance Technologies closed 0.91% higher at ₹2,239 apiece on the NSE.