Sterling Tools to manufacture magnet free traction motors for EV after UK deal
Published on 14/05/2025 07:43 AM
Sterling Tools to manufacture magnet free traction motors for EV after UK dealSterling Tools also reported its fourth quarter results on Tuesday, May 13. It reported a revenue of ₹165.24 crore, slightly lower than the ₹165.02 crore in the previous year. However, its revenue for the entire financial year 2025 increased to ₹651.61 crore from ₹613.69 crore in the year-ago period.By Shloka Badkar May 14, 2025, 7:43:52 AM IST (Updated)2 Min ReadShares of Sterling Tools Ltd. are in focus on Wednesday, May 14, after the company on Tuesday said it's subsidiary Sterling Gtake signed an exclusive manufacturing technology licensing agreement with Advanced Electric Machines (AEM) Ltd, UK.
With this, the company has forayed into the development, manufacturing and marketing of magnet free traction motors for electric vehicles. The company will manufacture these magnet free motors at its Faridabad plant.
The license is based on AEM's patented rare earth magnet-free technology. The company said royalty will be paid on sales.
Sterling Tools said producing the motors domestically is aimed to drive import substitution and reduce reliance on permanent magnets. The development will empower Indian companies and other suppliers to access advanced technology locally, building a self-reliant ecosystem for the auto industry, it added.
Sterling Tools also reported its fourth quarter results on Tuesday, May 13. It reported a revenue of ₹165.24 crore, slightly lower than the ₹165.02 crore in the previous year. However, its revenue for the entire financial year 2025 increased to ₹651.61 crore from ₹613.69 crore in the year-ago period.
The company's board of directors also recommended the final dividend of ₹2.5 per equity share of face value of ₹2 each, fully paid up for the financial year 2025. The same is subject to the approval of shareholders in the ensuing annual general meeting.
Shares of Sterling Tools ended the previous session 3.51% lower at ₹294.25 apiece. The stock has declined 46.29% in the last six months.
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