Suprajit Engineering : Annual Report 2022-2023

	September 1, 2023
	SEL/SEC/ 2023-2024/45
Ref: 532509	Ref: SUPRAJIT
BSE Limited	National Stock Exchange of India Ltd.
Department of Corporate Services	Exchange Plaza, C-1,Block-G,
P. J. Towers, 25th Floor, Dalal Street,	Bandra Kurla Complex, Bandra (E)
Mumbai- 400 001	Mumbai- 400 051
Dear Sirs,

Sub: Submission of Annual Report of the Company for the Financial Year 2022-23 pursuant to Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations)

In terms of Regulation 34(1) of the Listing Regulations, please find enclosed the Annual Report for the financial year 2022-23 along with the Notice of the Annual General Meeting, sent through electronic mode to shareholders of the Company whose e-mail addresses are registered with the Company / Depository Participants / Registrar and Transfer Agent.

The Annual Report of the Company is also available on the website of the Company at www.suprajit.com

Kindly take this into your record and treat this as compliance of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015.

For Suprajit Engineering Limited

MEDAPPA

GOWDA JANTIKAPU

Digitally signed by MEDAPPA GOWDA JANTIKAPU

Date: 2023.09.01 19:00:02 +05'30'

Medappa Gowda. J

CFO & Company Secretary

Encl: as above

38th

ANNUAL REPORT

2022-23

Suprajit Engineering Limited

Segmental and Geographic Synergies

Category - wise

Geography - wise

1%	2.5%	8% 5%				26%	25%	19%
				33%
FY		FY	25%		FY		FY
2001 - 02	2011 - 12			2021 - 22		2022 - 23
		62%				23%		22%
96.5%					18%	34%

1%		Automotive		2-Wheeler		Aftermarket			Non-Automotive
		10%
FY		FY	39%	FY			FY	47%
2011 - 12
2001 - 02			2021 - 22	61%	53%	2022 - 23

90%

99%

Global + India Export		India

Group Financial Highlights and Key Indicators

₹ in Million

Description	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Gross Income	2270	2663	3792	4612	5107	6006	6718	10504	12954	14546	15899	15628	16409	18405
Prot after tax	90	222	333	398	471	508	503	803	1137	1385	1338	1040	1427	1731
(PAT)
Equity and Reserves	546	702	969	1292	1667	2047	2408	4476	5242	6549	7751	8538	9897	10840
ROE%	15.49	33.89	39.84	35.22	31.85	27.36	22.58	20.90	25.49	23.49	18.71	12.77	15.48	16.69
Asset Turnover	3.25	3.81	4.37	4.58	4.29	3.94	4.00	4.69	4.04	3.56	3.86	3.36	3.79	4.27
Ratio (Net assets)
Debt Equity Ratio	0.46	0.39	0.44	0.30	0.27	0.27	0.38	0.26	0.47	0.26	0.21	0.16	0.09	0.03
(Term debt)
Current Ratio	1.24	1.30	1.59	1.50	1.57	1.60	1.85	1.81	1.61	1.53	1.65	1.47	1.76	2.02
Operational EBIDTA %	13.22	17.28	16.18	15.51	15.69	16.01	14.90	16.20	16.55	16.53	14.64	13.99	14.43	14.12
ROCE %	27.34	41.73	46.81	44.69	37.81	37.12	31.47	29.55	29.08	26.94	23.46	17.92	18.51	18.98
Book Value of	4.54	5.85	8.07	10.76	13.89	17.05	20.06	25.96	36.81	46.82	55.41	61.04	70.76	78.33
shares (Rs.)
EPS (Rs.)	0.74	1.84	2.77	3.31	3.92	4.23	4.19	6.11	8.13	9.90	9.57	7.43	10.20	12.49
Pay out Ratio (%)	25.72	27.32	20.19	23.12	22.13	27.99	30.27	31.36	20.35	23.19	22.23	23.43	17,75	24.62
to PAT **

2023

27524

1521

12245

13.18

4.51

0.27

1.92

11.58

#16.79

88.48

10.99

17.04

• *Pay out ratio on standalone basis* subject to shareholder's approval.
  # Reducing total other income from EBIT and considering only long-term loan.

Enabling a world in motion

Suprajit Engineering Limited

01

	MARCHING
	AHEAD WITH
K. Ajith Kumar Rai	CONFIDENCE...
Founder and Chairman

My dear shareholder,

I have pleasure in sharing with you the performance of Suprajit for the year 2022-23. The enclosed reports and nancial statements provide you with detailed and relevant information.

Last year, the global recessionary trends superseded Covid concerns. Most countries tightened monetary measures with signicant interest rate hikes due to inationary concerns. The commodity prices showed signs of abating, so did IC shortages and transportation costs/delays. Team Suprajit managed the challenging times well through focussed activities at various fronts to clock a commendable performance. While the Indian automotive industry grew at 11% in the year 2022-23, your company, on a consolidated basis grew at 49.55%

Some of the highlights of the last year are as under:

• Suprajit Electronic Division (SED) was inaugurated by Mr. Sudarshan Venu, Managing Director, TVS Motor Company Limited on November 2, 2022.
• Domestic Cable Division (DCD) crossed the milestone of ₹ 1000 crore sales.
• Light Duty Cable (LDC) entities continued their integration with Suprajit with excellent teamwork.
• Suprajit Technology Centre (STC) continued with commendable customer focussed product developments.
• A comprehensive aftermarket facility at Bommasandra was operationalised.
• Narsapura facility was enhanced to meet increased customer requirements.
• European business of PLD started its consolidation with a planned dissolution of Trifa.
• A strategic plan was put into action for the next 5 years.

Current year :

In-line with the strategic plan, your Company's business is now grouped into 4 verticals. This is done to get appropriate focus, attention, capital allocation and entrepreneurship for each of the divisions.

Suprajit Controls Division (SCD) will focus on global, outside of India, automotive and non automotive businesses, leveraging the strengths of LDC, SENA and SAL/SEU operations. This integration, while challenging, will bring much needed synergies amongst Group's Global Operations. I am condent that in about a year or two, we will see the fruits of this integration.

Domestic Cable Divisions (DCD) will focus on enhancing the market leadership in cables in India in both OE and aftermarket segments. Further, DCD will now leverage its proximity to customers by adding certain new products developed by STC in its strategically located plants, to make DCD more than just a cable maker.

Phoenix Lamps Division (PLD) will continue its "last man standing" philosophy of providing best halogen manufacturing footprint, not just to Indian markets but to many global brands. Once the European operations are streamlined under Luxlite by end of the year, PLD will emerge as a best one stop solution for halogen bulbs. In addition, PLD is aggressively pursuing drop in LED solutions in the aftermarket both in India and globally. It also use its export only facilities at Noida SEZ, for certain new products developed by STC. PLD will also use its inhouse expertise in automation to group's requirements.

Suprajit Electronics Division (SED) is the brand-new dimension of Suprajit. With fast evolving automotive technologies, it is strategically important for Suprajit to be part of this exciting fast changing segment. Some of the products developed by STC - digital clusters, electronic throttles, actuators, Rotary sensors etc., will be commercialised at this facility. The response so far has been exciting with multiple new business wins, signicantly from the EV segments.

Enabling a world in motion

Suprajit Engineering Limited

02

Next few years, I believe, are exciting for all of us at Suprajit, as we continue to be the preferred global cable system supplier, with signicant new business wins. PLD is emerging as the best halogen bulb supplier to the world. What is more exciting will be the product range oered by STC to customers and SED scaling its current nascent operations to challenge the best in business. It reminds me of the saying "The best is yet to come…..."

While these are exciting times in the coming years, the immediate short term continues to be challenging. The slowdown in discretionary spending has signicantly aected the non-automotive markets that we operate on. While the new wins in automotive business has to some extent oset the overall sluggish trend, there will be a negative impact on our business for the current year, by the drop in nonautomotive business.

Going forward, as we emerge "beyond cables", the landscape is exciting but road to success will also be challenging. However, with the regrouping of our teams into 4 divisions, solid focus on new projects/products, and, continued Mantra of Customer satisfaction, I am condent that Suprajit will emerge as a dependable supplier of value for money products for a range of auto/non-auto products in the years ahead for our customers and bring signicant value to all our shareholders.

To this end, I seek your continued support and good wishes.

With warm personal regards,

Yours sincerely,

K. Ajith Kumar Rai,

Chairman.

Enabling a world in motion