SJS Enterprises: revenues have expanded at a healthy compounded annual growth rate (CAGR) of 36% over the past four years

     SJS  Enterprises: revenues have expanded at a healthy compounded annual growth rate (CAGR) of 36% over the past four years

    • The  upgrade  in  the  long-term  rating  of  SJS  Enterprises  Limited  (SJS) referred  to  as  the  Group  or  the  company, reflects its strengthened business profile and increased scale of operations, which are expected to sustain, going forward. 
    • This will limit so factor in the improved diversification of its product portfolio, with the addition of several technologically advanced products like In-Mold  Decoration  (IMD),  In-Mold  Labelling  (IML),  In-Mold  Electronics  (IME)  and  In-Mold  Forming  (IMF)as  well  as  its expanded customer base, largely driven by the ramp-up in its acquired businesses of Exotech Plastics Private Limited(Exotech) and Walter Pack Automotive Products India Private Limited (WPI). 
    • Its financial profile and liquidity position also remain strong, underpinned by healthy profitability, comfortable capital structure and robust debt coverage indicators.
    • SJS’ revenues have expanded at a healthy compounded annual growth rate (CAGR) of 36% over the past four years with total consolidated revenues of Rs.628.0 crore in FY2024, aided by increase in its content per vehicle. 
    • Revenues grew further by 18%on a YoY basis in H1 FY2025as SJS has successfully ramped up the operations of its recently acquired businesses.
    • Moreover, the  operating profit margins remained  healthy  at  26%  in  H1  FY2025,  with  increasing  share  of  technologically  advanced products. 
    • With growing demand for premium aesthetics in the automotive segment, SJS is expected to sustain the revenue momentum,  going  forward,  supported  by  the  increasing  share  of  business from  existing  as  well  as new customers,  growth from new product launches and entry into new geographies, driven by the acquired businesses. 
    • Concurrently, SJS is expected to maintain its strong financial profile. 
    • The rating also considers SJS’ extensive experience in the manufacturing of self-adhesive labels and the established relationship it enjoys with its reputed clientele [original equipment manufacturers (OEMs) and tier-1 suppliers]. 
    • ICRA however notes the company’s moderate, albeit improving, scale of operations. Notwithstanding the healthy growth in revenues, ICRA notes that the scale of operations of SJS remains moderate vis-à-vis other entities in the similar rating category. 
    • Further, around ~70% of its consolidated revenues is derived from the automotive segment, which is vulnerable to cyclicality in demand. 
    • The cyclicality is partly mitigated, to an extent, as the white goods and farm equipment segments accounted for around 30%  of its  revenues  in  FY2024. 
    • SJS’customer  concentration remains  moderately  high, with the top five customers accounting for 52% of the consolidated revenues in FY2024, nonetheless the same is expected to reduce with addition of new customers.
    • The  Stable outlook  on  the  long-term rating reflects ICRA’s expectation that SJS’credit  profile  will  continue  to  remain adequately supported by the steady increase in revenues and healthy profit margins. 
    • This will limit its dependence on debt and lead to continued healthy debt coverage indicators.

    S.J.S. Enterprises: 9M margins at 24.7%

    https://youtu.be/PsHONemiLqk?si=Tyf9ui-2OMsRH4_a

    • For 9MFY24, revenue grew 35.1% YoY to Rs 4,410.1 mn, primarily on back of WPI acquisition and robust performance on consumer and exports business. 
    • SJS continues to expand share of wallet by winning new businesses from key customers like M&M, Tata Motors, Autoliv, Whirlpool, Royal Enfield, TVS, Honda Motorcycles & Scooter, Ola among many others
    • SJS became the first printing company in India to be awarded Quality system certification for new technology of ‘Optical cover Glass’  
    • EBITDA at Rs 1,103.5 mn, on a margin of 24.7%, grew 23.2% YoY. 
    • Net Profit grew 12.2% YoY to Rs 581.8 Mn, on a margin of 13.2%

     Thank you for contacting Rounaq! Please let us know how we can help you. 

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    SEBI registered RA : Rounaq Bakshi
    Waheguru

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