Shanthi Gears reports rise in net profit during Q2

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Shanthi Gears Ltd has reported a net profit of Rs 16.60 crore for the second quarter ending September 30, 2022, the company said on Friday. The Coimbatore-based company reported a net profit at Rs 7.90 crore during the corresponding quarter last year.

For the six-month period ending September 30, the profit surged to Rs 30.04 crore from Rs 16.48 crore a year ago. During the year ending March 31, the total profit stood at Rs 42.47 crore.

Shanthi Gears Ltd is a subsidiary of Tube Investments of India Ltd, which is part of the diversified conglomerate Murugappa Group. The total income during the quarter under review grew to Rs 112.03 crore from Rs 73.93 crore registered in the same period last year.

During the April-September period, the total income went up to Rs 213.02 crore from Rs 143 crore made last fiscal. In the year ending March 31, 2022, the total income stood at Rs 346.12 crore.

A statement from the company said it continues to focus on four key factors — revenue growth, profitability, return on invested capital and free cash flow. "The revenue of Rs 108.8 crore in the quarter with a 52 percent growth over Q2 of the previous year," the company said.

The focus on cost optimisation and lower capital employed enabled improvement in return on invested capital to 59 percent during Q2, it said. "The company generated free cash flow of Rs 11.2 crore during Q2. Free cash flow to PAT is 68 percent in Q2," it said.

Shanthi Gears said it received orders for Rs 104 crore during the quarter under review as against Rs 89 crore secured last year. The pending order book as on September 30, 2022, was at Rs 270 crore, the statement added.