SETL posts 26.6% increase in Q1 net profit at Rs 26.7 cr

Hyderabad: Leading high-precision engineering company, Standard Engineering Technology Limited (SETL) reported a 26.6 per cent growth in its net profit to Rs 26.7 crore in the first quarter of ongoing financial year.

Its total income came at Rs 252.2 crore, an increase of 41.5 per cent in Q1 of FY27 as compared to same period last fiscal year.

The company reported a PAT (profit after tax) margin of 10.6 percent during the quarter.

The engineering company continued to report sound growth despite its aggressive investment into new growth platforms.

Earlier, the company has entered into high-growth data centre business by announcing its planned acquisition of up to 51 per cent stake in GScale Energy.

This proposed acquisition is likely to create a second growth engine for the company, backed by around Rs 500 crore self-funded capital programme to build an integrated data centre engineering and manufacturing platform, the company said.

Last month, SETL also strengthened its near-decade-long technology relationship with GL Hakko Coof Japan by investing Rs 71.5 crore for an initial 19.19 per cent stake in the company. Under the agreement, the company can scale up to 51 per cent stake in the Japanese firm over next three years.

“The performance of first quarter (Q1FY27) is evidence of consistent, repeatable performance rather than a one-off achievement as SETL is becoming “India’s high precision engineering power house,” Nageswara Rao Kandula, Managing Director of SETL said. Meanwhile, the board of SETL has approved a preferential allotment for raising Rs 136.5 crore, comprising Rs71.5 crore through a cash issue to AGI Group Holdings Inc. of Japan and Monoflus Pte. Ltd. of Singapore, and around Rs 65 crore through a share swap with Truplusco India LLP as part consideration for the GScale transaction.