AIA Engineering (AIAENG) Q3 24/25 earnings summary

Executive summary

• Quarterly sales volume reached 66,000 tons, with nine-month volume at 187,000 tons, down from 225,911 tons year-over-year.

• Revenue for the quarter was INR 1,050 crores (Rs. 106,623 lacs), with EBITDA at INR 354.57 crores (Rs. 35,457 lacs) and PAT at INR 259.22 crores (Rs. 25,922 lacs).

• Management expects full-year volume between 250,000 and 260,000 tons, with growth resuming in the next few quarters.

• Strategic shift announced: pausing further capacity expansion in India and focusing on new modular plants in China and Ghana.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were reviewed and approved by the Board on 7 February 2025.

Financial highlights

• Consolidated revenue from operations for Q3 FY25 was Rs. 106,622.56 lakhs, down from Rs. 114,671.89 lakhs in Q3 FY24; nine-month revenue was Rs. 308,529.42 lakhs, down from Rs. 364,086.76 lakhs year-over-year.

• PAT for Q3 FY25 was Rs. 25,922 lacs, compared to Rs. 27,961 lacs in Q2 FY25 and Rs. 27,961.48 lacs in Q3 FY24.

• EBITDA margin for Q3 FY25 was 33.25%, compared to 34.32% in Q2 FY25.

• Other income in Q3 FY25 included Rs. 5,872 lacs from investments and Rs. 859 lacs from foreign exchange gain.

• Realization per kilo for the quarter was about INR 160.

Outlook and guidance

• Full-year volume guidance is 250,000–260,000 tons, with incremental annual growth of 25,000–40,000 tons expected as conversion rates improve.

• Order book as of January 1, 2025, stands at Rs. 585 Crores, indicating a healthy pipeline.

• New manufacturing facilities in China and Ghana (50,000 MT each) are planned to enhance market access and reduce costs.

• China plant expected to contribute in the second half of next year; Ghana plant to be operational in 18 months.

• U.S. Department of Commerce has imposed preliminary countervailing and anti-dumping duties on certain high chrome iron grinding media imported from India, with final determination expected in April/May 2025.