Suprajit Engineering eyes double-digit revenue growth in FY25

Suprajit Engineering is targeting double-digit revenue growth in the next financial year despite challenges.

The company expects an improvement in its controls division within the next couple of quarters, and domestic business grow between 6 and 8% in FY25.

K Ajith Kumar Rai, Founder and Chairman of Suprajit Engineering, said, “Our global business will make the overall group’s growth in double digits,” he added.

Suprajit Engineering is a producer of control cables and halogen bulbs, with a significant market presence in both automotive cable and halogen bulb manufacturing.

As of FY23, global operations contributed to 39% of its revenues and 61% was from the domestic business.

The company's earnings are diversified across various sectors: two-wheelers account for 34% of revenue, aftermarket sales contribute 26%, non-automotive sectors bring in 23%, and automotive sales make up the remaining 18%.

Rai said the Red Sea crisis continues to hurt business. As the ships got stranded, the company was forced to do air-freights. Container rates have also shot up by 6-8 times in the past four months. Overall, it has led to around 100 basis points (bps) hit on the company’s margins.

However, there has been some stability now and the stranded ships have started to reach their destinations in Europe and US resulting in air-freight costs coming down.

Suprajit Engineering supplies products to major electric vehicle (EV) makers as well as to various original equipment manufacturers (OEMs).

The company is planning to acquire more land parcels for growth requirements.

It had started its electronics division, which has been growing aggressively. “We expect that it will require space. We recently launched our braking division. All these new projects will have to find new places. That is why we will be requiring some of these land parcels,” he explained.

The current market capitalisation of the company is at ₹5,655.66 crore.