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Informist, Thursday, Jul. 30, 2026

 

--Craftsman Automation: Seeing lot of traction in material handling 

--CONTEXT: Comments by Craftsman Auto's mgmt in post-earnings analyst call 

 

By Pratiksha and Meera Nair

 

NEW DELHI – Good traction in material handling, equipment lifting and storage is expected to keep margins intact going forward, Craftsman Automation Ltd.'s senior management said Thursday. "The capex cycle started in India, and we have seen a lot of traction both on the material handling, lifting equipment as well as on storage. All of these are increasing quarterly," the management said in a post-earnings analyst concall. "So, this will keep the margins intact going forward. Not a big spike, but we see it increasing." 

 

Craftsman Automation's earnings before interest, taxes, depreciation, and amortisation rose 51% on year to INR 4.08 billion in the June quarter. EBITDA margin rose to 17% in Apr-Jun from 15% a year ago. 

 

The company's capacity utilisation for the powertrain segment currently averages around 70% and may rise close to 80% during the festive season, the management said. Capacity utilisation for the aluminium segment is currently operating at more than 80%, it added.

 

"On an annualised basis, anywhere above 80% (capacity utilisation for powertrain) is wishful thinking. I think beyond 75% is very difficult because of the seasonal nature of the business and the risk of stopping customer lines," it said. "I would say that we are operating around 10% less than the optimum capacity. The 10%, hopefully, we will be able to bridge the gap in this Q2 or Q4 as we start on the powertrain."

 

Of the company's total business, consolidated powertrain business reported sales of INR 6.23 billion in the June quarter, up from INR 4.96 billion in the year-ago quarter. Its aluminium product sales were at INR 14.79 billion, higher than the INR 10.71 billion it reported in the year-ago quarter. The company's industrial and engineering segment sales rose to INR 3.30 billion, up on year from INR 2.16 billion.

 

"India is moving towards some manufacturing economy and I think we have very bright prospects to continue to grow in the coming years," Chairman and Managing Director Srinivasan Ravi said. 

 

Craftsman Automation on Wednesday announced that its consolidated net profit more than doubled on year to INR 1.51 billion in the June quarter, largely due to robust growth in sales. The company's sales rose over 36% on year to INR 24.32 billion for the quarter. On Thursday, the company's shares ended 1.4% higher at INR 10,047 on the National Stock Exchange. End

 

Edited by Saji George Titus

 

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