Setco Automotive Shows Strong Operational Metrics Amid Ongoing Profit Challenges

Setco Automotive has recently undergone a financial trend adjustment, reflecting a notable improvement in its performance metrics for the quarter ending March 2025. The company reported its highest operating profit to interest ratio at 0.70 times, indicating a strong ability to cover interest expenses. Additionally, net sales reached a record Rs 210.63 crore, while PBDIT also peaked at Rs 40.60 crore, showcasing robust operational efficiency.
The operating profit to net sales ratio stood at 19.28%, further emphasizing the company's effective cost management strategies. However, it is important to note that while the company has recorded its highest figures in several key areas, it still reported a negative profit before tax of Rs -25.41 crore and a net profit after tax of Rs -18.28 crore, with an earnings per share of Rs -1.37.

In terms of market performance, Setco Automotive has outperformed the Sensex over various time frames, particularly in the one-year period, where it achieved a stock return of 70.04% compared to the Sensex's 8.17%. This trend highlights the company's resilience and potential for recovery within the auto components and equipment sector.