SJS Enterprises reports exceptional FY24 results, surpassing industry growth

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SJS Enterprises Limited (BSE: 543387; NSE: SJS), a leader in India’s decorative aesthetics sector, has announced a remarkable financial performance for the fourth quarter and full year ended March 31, 2024. The company’s robust results were highlighted in a detailed disclosure following approval from the Board of Directors, showcasing significant revenue growth and operational achievements, particularly in the wake of the strategic WPI acquisition.

SJS Enterprises Financial Performance Overview for Q4 and FY24

In a significant year-over-year (YoY) leap, SJS Enterprises reported a substantial 75.3% increase in revenue for Q4 FY24, amounting to ₹1,867.9 million. This growth significantly outperformed the automotive market’s 22.8% growth, with SJS’s automotive business itself expanding by 73.5% YoY. The company’s EBITDA for the quarter grew by 82.2% to ₹495.3 million, boasting an impressive margin of 26.2%. Adjusted Net Profit, excluding amortization expenses, saw a 15.8% rise to ₹295.9 million.

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For the fiscal year 2024, SJS delivered a 45.0% increase in revenue, reaching ₹6,278.0 million. This performance not only surpassed the automotive industry’s 9.7% production volume growth but also met SJS’s own revenue growth target for the year. The year’s EBITDA stood at ₹1,599.0 million, up 36.9% YoY, with net profit after tax (PAT) growing by 26.9% to ₹853.7 million.

Strategic Developments and Market Expansion

The year was marked by significant strategic activities, including the acquisition of WPI, which has diversified and strengthened SJS’s product portfolio across multiple segments. Notably, two-wheelers now account for 37% of revenue, with passenger vehicles at 36%, and consumer segments contributing 20%.

The company’s export operations also saw substantial growth, with a 51.1% increase YoY, representing 7.7% of total consolidated sales. This international expansion was supported by the appointment of a new sales representative in South Korea to drive sales in the East Asia region.

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Operational Excellence and Technological Advancements

SJS Enterprises has continued to innovate in product offerings, significantly increasing the contribution of new generation products from 9.4% in FY23 to 25.2% in FY24. The integration of technologies such as IML (In-Mold Labeling), IMD (In-Mold Decoration), and IMF (In-Mold Film) through the WPI acquisition has positioned SJS to capitalize on growing market demands for advanced decorative and aesthetic solutions.

Management Insights and Future Outlook

Reflecting on the year’s performance, Mr. K. A. Joseph, Managing Director & Co-Founder of SJS Enterprises, emphasized the strategic moves that have positioned the company for continued success. “The WPI business is progressing well, with sustained margin improvements and evolving cross-selling opportunities,” said Joseph. He also highlighted the board’s decision to declare a final dividend of 20%, a first since the company’s IPO, underscoring their commitment to shareholder value.

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Mr. Sanjay Thapar, Executive Director & CEO, also expressed satisfaction with the company’s execution of strategic plans, which have significantly bolstered the PV and consumer segments, alongside a notable increase in exports.

SJS Enterprises’ FY24 performance is a testament to its strategic foresight and operational agility. The company’s ability to significantly outperform industry averages and integrate new technologies and acquisitions into its business model demonstrates a robust framework for sustained growth and market leadership in the decorative aesthetics industry.

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