Sterling Tools Reports 0.15% Increase in PAT in Q3FY25 at Rs 13.60 Crore

Sterling Tools Ltd (STL), an automotive fastener manufacturer, reported a profit after tax of Rs 13.6 crore for the third quarter of FY25, up from Rs 13.58 crore during the same period previous year. The company's consolidated total income grew by 12.3% year-over-year to Rs 262.7 crore in Q3 FY25, compared to Rs 234.0 crore in the same quarter last year. The adjusted EBITDA for the quarter increased by 13.0% YoY to Rs 31.7 crore, maintaining an EBITDA margin of 12.1%.

For the nine-month period ended December 31, 2024, the company demonstrated stronger growth metrics. The consolidated total income rose by 24.5% YoY to Rs 832.3 crore, up from Rs 668.3 crore in 9M FY24. The profit after tax showed a 26.5% increase to Rs 49.5 crore, compared to Rs 39.1 crore in the previous year, with a PAT margin of 5.9%. The adjusted EBITDA for the nine-month period grew by 25.8% to Rs 105.9 crore, with a margin of 12.7%.

The company's EV component manufacturing subsidiary, Sterling Gtake E-Mobility Limited (SGEM), emerged as a key growth driver, recording a 56% revenue increase to Rs 345.9 crore in 9M FY25. The standalone business maintained steady performance with an 8.9% YoY growth in the same period.

In recent developments, STL has formed several strategic partnerships to strengthen its position in the EV sector. The company signed an memorandum of understanding with MOTIVELINK Co., Ltd to manufacture magnetic components for India's EV and electronics manufacturing industry. Through its subsidiary Sterling Tech-Mobility Limited (STML), it has partnered with Kunshan GLVAC Yuantong New Energy Technology Co. Ltd for manufacturing HVDC Contactors and Relays. Additionally, STML has collaborated with Zhejiang Meishuo Electric Technology Co. Ltd. to produce Latching Relays for the energy sector and industrial applications in India.

Established in 1979, Sterling Tools Limited specializes in manufacturing high tensile cold forged automotive fasteners for various segments including passenger cars, two-wheelers, commercial vehicles, and agricultural equipment. The company serves both domestic and international OEM clients, and has expanded into the electric vehicle components sector through its subsidiary.