Endurance Technologies slips 8% as Q3 profit halves to Rs 95 crore

Shares of Endurance Technologies slipped 8 per cent to Rs 1,423 on the BSE in Wednesday's intra-day trade after the company's profit after tax (PAT) halved to Rs 94.6 crore in December quarter (Q3FY22) due to weak operational performance. The auto parts & equipment company had posted PAT of Rs 190 crore in the year-ago quarter (Q3FY21).

Consolidated revenue from operations was down 7 per cent year-on-year (YoY) at Rs 1,889 crore against Rs 2,041 crore in previous year quarter. Earnings before interest tax and depreciation and amortization (Ebitda) decreased 41 per cent YoY at Rs 210.7 crore, while margins contracted 640 bps at 11.1 per cent during the quarter.

The management said the market, this year, is subdued with headwinds in the form of weak rural demand and higher cost of ownership. "In the EU (including UK), the number of new car registrations was down by 23.4 per cent YoY in Q3. The European automotive market has been deeply impacted by semi-conductor shortages and soaring energy prices," the management said.

Endurance is one of the leading automotive component manufacturers, having a diverse range of technology intensified products with operations in India and Europe (Italy and Germany). In India, the company predominantly caters to two and three wheeler OEM5 and products include aluminium castings, suspensions, transmission and braking systems. In Europe, the company predominantly caters to four wheeler OEM5 and mainly supply aluminium casting products.