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Sterling Tools
24-May-19   10:50 Hrs IST
Sterling Tools (STL) is engaged in the manufacturing of high-tensile (HT) cold forged fasteners mainly for automobiles. The company is one of the top 3 fasteners manufacturers in India and caters to leading automotive companies in India, Europe and USA. STL has 3 plants which are located in Faridabad and has over 1000 employees.

Quarter results

For the quarter, sales fell 10% to Rs 118.30 crore. OPM fell 210 basis points to 13.7% which took OP down 22% to Rs 16.18 crore.

Other income rose 12% to Rs 1.72 crore and interest cost grew 67% to Rs 1.60 core. As depreciation grew 19% to Rs 5.04 crore, PBT fell 34% to Rs 11.26 crore.

Tax fell 24% to Rs 3.90 crore after which PAT went down 38% to Rs 7.35 crore.

FY 2019 results

In FY 2019, sales grew 13% to Rs 512.20 crore. OPM fell 320 basis points to 16.8% which saw OP fall 5% to Rs 85.94 crore.

Other income grew 13% to Rs 6.36 crore and interest cost fell 3% to Rs 3.66 crore. As depreciation went up 8% to Rs 19.05 crore, PBT declined 7% to Rs 69.59 crore.

Tax fell 6% to Rs 24.73 crore after which PAT went down 8% to Rs 44.86 crore.

Caters to all the segments of the auto industry

The company caters to all segments of the automobile industry namely Two wheeler, CV, passenger vehicles, farm Equipment and Aftermarket.

Sterling Tools is the favoured supplier to all major auto OEMs (original equipment manufacturers) in India. It caters to varied and customized demand of clients.

It is the largest supplier of HT fasteners to Honda and the second - largest supplier to Maruti and Tatas. Its other marquee list of customers includes Hero, Ashok Leyland, TAFE, Mahindra and Mahindra, Volvo, Suzuki, Fiat, Eicher, General Motors, etc.

Its aftermarket network comprises of over 60 dealers and the numbers are growing rapidly. With regional offices in both Chennai and Pune and residential representatives in places like Jamshedpur and Mumbai it has been able to interact closely with automobile dealers, fleet owners and mechanics. This has helped the company gain a better understanding of their needs and enabled it to serve them better. By further strengthening its foothold in this segment, the company intends to make its presence felt in every part of the country.

Offers full range of fasteners

The company's product portfolio includes special fasteners, standard fasteners, surface treatment and coatings, chassis fasteners and engine fasteners. Its fasteners comply with most recognized standards such as Indian Standards-IS, German Standards-DIN, Japanese Standards-JIS, American Standards-ASTM and British Standards-BS.

Valuation

The stock trades at Rs 192.

Sterling Tools: Results

 

1903 (3)1803 (3)Var. (%)1903 (12)1803 (12)Var. (%)
Sales118.30131.19-10512.20452.9113
OPM (%)13.715.716.820.0
OP16.1820.64-2285.9490.68-5
Other inc.1.721.54126.365.6213
PBIDT17.9022.18-1992.3096.29-4
Interest1.600.96673.663.78-3
PBDT16.3021.22-2388.6492.51-4
Dep.5.044.251919.0517.598
PBT11.2616.97-3469.5974.93-7
EO0.000.00--0.000.00--
PBT after EO11.2616.97-3469.5974.93-7
Total Tax3.905.17-2424.7326.27-6
PAT7.3511.81-3844.8648.66-8
EPS (Rs) *##12.513.5
* on current equity of Rs 7.2048 crore. Face Value: Rs 2
#EPS can not be annualized due to seasonality in business
Figures in Rs crore
Source: Capitaline Databases

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