Suprajit Engineering Limited: history, ownership, mission, how it works & makes money

A Brief History of Suprajit Engineering Limited

Founded in 1985, Suprajit Engineering Limited has established itself as a prominent player in the manufacturing sector of automotive components in India. The company initially focused on manufacturing cables and has since diversified its product portfolio to include industrial cables, automotive lighting, and other precision-engineered parts.

By the end of the financial year 2022, Suprajit reported a total revenue of ₹1,151.07 crore, showcasing significant growth compared to previous years. In FY 2021, the revenue stood at ₹951.93 crore, marking a year-over-year growth of approximately 21%.

Suprajit has expanded its operations globally, with manufacturing facilities in various locations, including plants in Pune, Bangalore, and Halol. The company also has a presence in international markets through subsidiaries and joint ventures. For instance, it has collaborated with firms across Europe and North America.

In the fiscal year 2022, Suprajit recorded a net profit of ₹105.80 crore, as compared to ₹74.12 crore in FY 2021. This represents an increase of over 42%. Their EBITDA for FY 2022 was reported at ₹279.75 crore with a margin of approximately 24.3%.

The company has consistently invested in research and development to enhance its product offerings. Between FY 2021 and FY 2022, Suprajit allocated a budget of around ₹25 crore towards R&D efforts, focusing on innovation in cable technology and automotive components.

Suprajit's stock performance on the BSE has also seen favorable trends. As of October 2023, the share price is around ₹440, reflecting a growth of approximately 52% from ₹290 at the beginning of the fiscal year 2022.

The following table provides a summary of the financial performance of Suprajit over the last three fiscal years:

Suprajit continues its trajectory of growth, leveraging technological advancements and expanding its global footprint. The commitment to quality and innovation has positioned the company favorably within the competitive landscape of the automotive components industry in India and abroad.

A Who Owns Suprajit Engineering Limited

Suprajit Engineering Limited, a leading manufacturer of automotive cables and other precision products, has a diverse ownership structure. As of the latest financial data, the company has several key shareholders that form the backbone of its ownership.

The promoter group holds a substantial portion of Suprajit Engineering's shares, which indicates a strong commitment and confidence in the company's future. The presence of FIIs and DIIs reflects the attractiveness of Suprajit as an investment opportunity.

Additionally, according to the latest annual report, the total number of outstanding shares for Suprajit Engineering Limited is approximately 44.8 million shares. This is significant for understanding the market capitalization and trends in ownership.

As of the last quarter, Suprajit Engineering's market capitalization was around ₹3,826 crores (approximately $515 million), indicating a healthy market presence. The company's stock performance has been notable, with a year-to-date increase of approximately 25%, reflecting positive investor sentiment.

In summary, the ownership of Suprajit Engineering Limited is characterized by a mix of promoters, institutional investors, and retail investors, creating a balanced and diversified shareholder base. This structure is critical for ensuring stability and growth as the company navigates the automotive and precision engineering markets.

Suprajit Engineering Limited Mission Statement

Suprajit Engineering Limited is a prominent player in the Indian automotive and non-automotive components sector. The company's mission statement reflects its commitment to excellence, innovation, and sustainability while delivering high-quality products to its customers.

The mission statement emphasizes:

• Providing world-class engineering solutions.
• Continuous improvement in product and process quality.
• Commitment to customer satisfaction and long-term relationships.
• Enhancing stakeholder value through sustainable practices.

The company operates in various segments, including cables and assemblies for the automotive industry, and it has expanded its footprint globally. As of March 2023, Suprajit Engineering Limited reported sales of approximately ₹1,473 crores, exhibiting a growth rate of **19%** compared to the previous fiscal year.

The company’s vision is supported by strategic initiatives aimed at enhancing productivity and operational efficiency. This is evidenced by their investment of **₹150 crores** in advanced manufacturing technologies and systems, aimed at streamlining production and reducing lead times.

Below is a table summarizing some of the key financial metrics for Suprajit Engineering Limited for the fiscal year ending March 2023:

Suprajit Engineering Limited also focuses on R&D investments, contributing **3%** of its revenue toward innovation and product development. This strategic investment reinforces its commitment to remaining at the forefront of technology in the automotive sector.

The company aims for sustainable practices, focusing on reducing carbon emissions by **10%** over the next five years through its green initiatives. This aligns with its mission of enhancing stakeholder value while being environmentally responsible.

In terms of customer engagement, Suprajit Engineering connects with its clients through regular feedback mechanisms, which have resulted in a **95%** customer satisfaction rate as per the latest surveys conducted.

Overall, Suprajit Engineering Limited's mission statement serves as a guiding principle for its operations, reflecting its commitment to quality, innovation, and sustainability in the highly competitive automotive industry.

How Suprajit Engineering Limited Works

Suprajit Engineering Limited, established in 1985, is a prominent player in the automotive components sector in India. The company focuses on manufacturing a variety of automotive cables and other precision-engineered components. It operates through multiple segments, primarily catering to the two-wheeler, three-wheeler, and four-wheeler automotive markets.

As of the financial year ending March 2023, Suprajit Engineering reported an annual revenue of ₹1,843 crore, representing a growth of approximately 15% compared to the previous fiscal year. The company’s EBITDA for this period was around ₹389 crore, yielding an EBITDA margin of 21%.

Suprajit operates several manufacturing facilities across India, with significant investments in modern technology and automation processes. These facilities are strategically located to cater to major automotive hubs, thereby reducing logistics costs and enhancing service delivery.

The company has diversified its product offerings, which include:

• Automotive Cables
• Instrumentation Cables
• Bicycle Cables
• Control Cables
• Specialty Cables
• Spring Manufacturing

In terms of market share, Suprajit Engineering holds approximately 45% of the Indian automotive cable market. The company has forged partnerships with leading automobile manufacturers, including Tata Motors, Mahindra & Mahindra, and Royal Enfield, thus ensuring a steady stream of demand for its products.

Suprajit Engineering has also expanded its global footprint with recent acquisitions and joint ventures. In 2022, the company acquired a minority stake in a German automotive parts supplier, enhancing its technological capabilities and access to the European market.

The company's focus on innovation has resulted in significant investment in R&D, with an expenditure of around ₹30 crore in FY 2023. This investment is directed towards developing new products and improving manufacturing processes. The R&D efforts have led to the introduction of several new product lines, which have contributed positively to revenue growth.

Suprajit Engineering has faced some challenges, including supply chain disruptions affecting raw material procurement. However, the management has implemented strategies to mitigate these risks, including developing local suppliers and optimizing inventory management.

As of Q2 2023, the company’s stock was trading at approximately ₹337, reflecting a rise of 25% from the previous year. The earnings per share (EPS) stood at ₹14.63.

The company has consistently maintained a healthy dividend payout ratio of around 30%, signaling its commitment to returning value to shareholders. The dividend declared for FY 2023 was ₹4 per share.

How Suprajit Engineering Limited Makes Money

Suprajit Engineering Limited, listed on the Bombay Stock Exchange (BSE) under the ticker symbol SUPRAJIT, derives its revenue primarily from the manufacturing of automotive and non-automotive cables and components. The company's revenue streams can be categorized into several key segments:

• Automotive Segment: This segment includes the production of cables for two-wheelers, four-wheelers, and commercial vehicles. For the fiscal year 2022-2023, this segment contributed approximately 78% of total revenues.
• Non-Automotive Segment: This comprises cables and components for industries such as railway, aerospace, and industrial applications. It accounted for around 22% of total revenues in the same period.

In terms of financial performance, Suprajit Engineering reported consolidated revenue of INR 2,416 crores for the fiscal year 2022-2023, a 17% increase compared to the previous year. The net profit stood at INR 227 crores, reflecting a net profit margin of approximately 9.4%.

The company’s efficient operational strategies and cost management have also played a significant role in its profitability. For instance, the EBITDA margin improved to 14% in FY2022-2023, driven by operational efficiencies and economies of scale.

Suprajit Engineering has shown consistent growth in both domestic and international markets. The company exports to over 40 countries, contributing significantly to its revenue mix. In FY2022-2023, exports accounted for about 25% of total revenue, demonstrating strong demand for its products overseas.

Besides traditional manufacturing, Suprajit is also investing in technology and automation to enhance product quality and reduce lead times. The company has implemented several Industry 4.0 practices across its manufacturing facilities, which are expected to drive efficiencies and lower costs in the coming years.

Furthermore, Suprajit has a strategic focus on research and development (R&D), with an R&D expenditure representing approximately 2% of its annual revenue. Innovations in product offerings, particularly in the automotive sector, have bolstered its market position and enabled it to capture new business opportunities.

The company’s diverse client base includes major automotive manufacturers like Tata Motors, Royal Enfield, and Honda, ensuring a steady demand for its products. The strong relationships with these clients provide a reliable revenue stream.

Overall, Suprajit Engineering Limited's multifaceted approach to revenue generation, from automotive components to strategic international exports, positions it strongly within the industry and fuels ongoing financial growth.