Setco Automotive's Q1 FY 2025-26 Quarterly Results

Result Summary

• Setco Automotive Ltd reported a 3.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 10.1%.
• Its expenses for the quarter were up by 8.0% QoQ and 10.9% YoY.
• The net profit increased 49.3% QoQ and increased 19.8% YoY.
• The earnings per share (EPS) of Setco Automotive Ltd declined at 2.6 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Setco Automotive Ltd is a company that operates within the automotive industry. It is primarily engaged in the manufacturing and distribution of automotive components, with a particular focus on clutch systems for commercial vehicles. The company is known for its comprehensive range of clutch products that cater to various segments within the automotive market. Setco Automotive may also be involved in providing aftermarket services, although specific details regarding recent developments or expansions are not available in the provided data. As an entity in the automotive sector, Setco Automotive's performance is influenced by industry trends, demand fluctuations in commercial vehicles, and broader economic conditions impacting the automotive market.

Revenue

In Q1FY26, Setco Automotive Ltd reported a total income of ₹180.11 crores. This marks an increase from the previous quarter, Q4FY25, where the total income was ₹174.05 crores, representing a quarter-over-quarter (QoQ) growth of 3.5%. When compared year-over-year (YoY) with Q1FY25, where the total income was ₹163.62 crores, there is a notable increase of 10.1%. This growth in revenue over the year suggests a positive trajectory in the company's income generation capabilities. The increase in total income can be attributed to factors such as an enhanced product line, improved market penetration, or increased demand in the automotive sector, although specific drivers are not detailed in the provided data.

Profitability

The financial performance of Setco Automotive Ltd in terms of profitability has shown some challenging trends. The company reported a loss before tax of ₹43.76 crores in Q1FY26, which is a deterioration from the previous quarter's loss of ₹34.43 crores. This reflects a quarter-over-quarter increase in losses by 27.1%. Comparing this with Q1FY25, where the loss before tax was ₹37.46 crores, there is a year-over-year increase in losses by 16.8%. The profit after tax in Q1FY26 was also negative, at ₹42.23 crores, showing a significant increase in losses from ₹28.29 crores in Q4FY25 and ₹35.26 crores in Q1FY25. The earnings per share (EPS) followed a similar pattern, with Q1FY26 reporting a negative EPS of ₹2.60 compared to negative ₹1.80 in Q4FY25 and negative ₹2.20 in Q1FY25. The negative profitability metrics indicate a period of financial strain for the company.

Operating Metrics

Total expenses for Setco Automotive Ltd in Q1FY26 were reported at ₹222.75 crores, which shows an increase of 8.0% from Q4FY25, where expenses were ₹206.28 crores. Year-over-year, there was a 10.9% increase from Q1FY25's expenses of ₹200.79 crores. This increase in expenses, coupled with the revenue figures, highlights a widening gap between income and expenses, impacting the company's net profitability. The tax expense also saw a reduction, with Q1FY26 reporting a tax of negative ₹1.53 crores, a significant decrease from negative ₹6.14 crores in Q4FY25 and negative ₹2.20 crores in Q1FY25. The reduction in tax expenses reflects changes in the company's financial structure or tax planning strategies. Overall, the operating metrics indicate an increase in operational costs, which has contributed to the financial losses observed in the profitability analysis.