SJS DELIVERS STRONG PERFORMANCE IN Q2FY23

The Board of Directors of SJS Enterprises Limited (BSE: 543387) (NSE: SJS), one of India’s leading players in the decorative aesthetics industry, today approved the audited financial results for the quarter and the half-year ended September 30, 2022, for the financial year 2022-23. The company delivered a strong and robust performance, outpacing the industry, despite a slowdown in exports and the consumer durable goods industry, impacted by the ongoing war between Ukraine and Russia and macro headwinds. economic.

Financial Highlights (Consolidated) Details (INR in Mn) Q2FY23 Q2FY22 YOY% Q1FY23 QOQ% H1FY23 H1FY22 YOY% Operating Income 1,169.40 996.9 17.3% 1,031.7 13.3% % 28.0% 26.6% 26.4% 27.2% 25.8% Profit after tax (PAT) 199.5 152.7 30.7% 162.1 23.1% 361.6 247.6 46.0% PAT margin % 17, 1% 15.3% 15.7% 16.4% 14.2% review, company recorded consolidated revenue of ₹1,169.4m, robust growth of 17.3% YoY , driven by 30.3% YoY growth in its automotive revenue segment, outpacing 2W and PV industry output, a combined 12.1% YoY growth. EBITDA increased on the back of higher sales, lower raw material prices and operational efficiency to ₹333.8m, a year-on-year growth of 24.5%. The EBITDA margin remained solid at 28.0%, up 134 basis points year-on-year. Net profit (PAT) for Q2FY23 jumped 30.7% YoY to ₹199.5m on a margin of 17.1%, an improvement of 175bps. Domestic sales grew 22.9% year-on-year, driven by 35.4% and 31.1% year-on-year growth in 2W and PV, respectively. Despite the impact on exports, SJS maintained its business momentum in Q2FY23. The company continued its growth momentum by adding big-name customers like Skoda Auto Volkswagen India – for decals and 3D lux parts and Atomberg Technologies, one of the leading manufacturers of high-end fans for home appliances in the market Indian – for IML parts. SJS entered the premium FMCG segment with the addition of John Distilleries – for specialist decals. With the addition of BuymyEV and TI India, SJS now supplies 12 customers in the EV space. The company also won new orders from mega accounts such as TVS Motors, Bajaj Auto, Royal Enfield, M&M and Whirlpool, among others. The company proactively develops futuristic products such as illuminated logos, protective glass for automotive screens, etc., to stay ahead of the technological curve.

For the six months ended September 30, 2022, SJS Enterprises met its growth forecast of 25% year-over-year, outpacing industry growth. The company recorded revenue of ₹2,201.1 million, growing 26.5% year-on-year. SJS surpassed 2W and PV industry productions combined 22.5% YoY growth with 38.9% YoY growth in the automotive segment. Healthy operating EBITDA of ₹612.0m, robust growth of 34.8% YoY and solid margins of 27.2%. Net Profit (PAT) for H1FY23 increased significantly by 46.0% YoY to ₹361.6m, with a margin of 16.4%. Commenting on the company’s performance, MR. KA Joseph, Managing Director of SJS Enterprises Limited, said, “We are delighted with our performance in Q2FY23. We remained cautiously positive and were able to outperform the industry. This growth is due to strong customer relationships and our customers derive immense value from our continued focus on quality and delivery excellence. The 8 awards won by SJS during the quarter bear witness to this. I am confident that in the future, we will be able to further strengthen our relationships with our customers, develop next-generation products, expand our reach and achieve our guided financial growth.” ”This was another good term. We are extremely positive about the growth prospects for our business, given the improving outlook for the automotive industry, premiumization trends, and positive customer response to the futuristic technology development initiatives at SJS. Despite near-term geopolitical challenges in global markets, we remain cautiously optimistic on exports. However, we are confident of achieving a revenue growth CAGR of around 25% over the next two years, while maintaining best-in-class margins. Value creation through new products will be one of the key drivers of future growth. We are already working with OEMs for futuristic products like illuminated logos and cover glass technology for automotive center console displays, etc. We are also preparing for the future with cutting-edge technology products like IME and smart surface technologies that will enable a high growth trajectory for the Company,” added Mr. Sanjay Thapar, Executive Director and CEO, SJS Enterprises Limited.

About SJS Enterprises SJS Enterprises Limited (https://www.sjsindia.com) is one of the leading players in India’s decorative aesthetics industry with one of the widest product ranges present in traditional and high-end products. The company offers 11 categories of products like decals, logos – domes and lux 3D, aluminum badges, 2D and 3D appliques, chrome parts, overlays, molded decorations/labels, optical plastics and assembly lens masks. These products are primarily intended for the two-wheeler (2W), passenger vehicle (PV) and large consumer durable (CD) sectors, as well as the utility vehicle, medical device, agricultural equipment and sanitary appliances. SJS has a strong manufacturing footprint with 2 facilities in Bengaluru and Pune, and global distribution capabilities exporting to over 20 countries.

DISCLAIMER: Certain statements made in the press release may be forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties such as significant changes in the economic environment in India and abroad, tax laws, inflation, litigation, etc. Actual results may differ materially from those expressed or implied. SJS Enterprises Ltd. will not be responsible for any action taken on the basis of these statements and discussions; and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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