Aether Industries (AETHER) Q2 24/25 earnings summary

Executive summary

• Q2 and H1 FY25 saw strong revenue and profit growth, with significant contributions from pharma, agro, and large scale manufacturing segments.

• 12 new clients were added, mainly in Pharma, Agro, and coatings; business expanded with new contracts and site expansions, including renewables and sustainability.

• Fire-affected Site 2 is expected to be fully operational by mid-November 2024; insurance claims for inventory loss are pending, with fixed asset claims to follow.

• Major CapEx and greenfield projects are ongoing at multiple sites, with solar power investments supporting sustainability and cost savings.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY25 were approved, with an unqualified limited review report from statutory auditors.

Financial highlights

• Q2 FY25 consolidated revenue: INR 2,098 million, up 9% QoQ and 18% YoY; EBITDA: INR 613 million, up 18% QoQ and 2% YoY; PAT: INR 348 million, up 16% QoQ and 5% YoY.

• H1 FY25 consolidated revenue: INR 4,017 million, up 18% YoY; EBITDA: INR 1,134 million, up 6% YoY; PAT: INR 647 million, down 3% YoY.

• Standalone Q2 FY25 revenue: INR 2,091 million, up 17% YoY; EBITDA: INR 642 million, up 5% YoY; PAT: INR 381 million, up 1% YoY.

• Standalone H1 FY25 revenue: INR 4,011 million, up 17% YoY; EBITDA: INR 1,166 million, up 7% YoY; PAT: INR 683 million, up 1% YoY.

• EBITDA margin remained strong at 29-31% across periods.

Outlook and guidance

• Prices are expected to improve from Q4 FY25 as Chinese supply pressure eases; margins are expected to return to historical levels (28-30% EBITDA) in H2 FY25.

• Ongoing expansion projects at multiple sites, with new capacity and commercial production expected in Q3 FY25 and FY26.

• Baker Hughes contract revenue for FY25 will be lower than earlier guidance due to delays, but FY26 guidance remains intact.

• Targeting 100% capacity utilization at Site 2 and 70-75% at Site 3 by year-end.

• Insurance claim for fire-related inventory loss of ₹138.97 million is expected in Q3 FY25; fixed asset claim to be submitted after assessment.