AIA Engineering (AIAENG) Q3 24/25 earnings summary

Executive summary

• Quarterly sales volume reached 65,780 MT, up sequentially but down year-over-year, with cumulative nine-month volume at 187,000 MT and full-year guidance between 250,000 and 260,000 MT.

• Revenue for Q3 FY25 was Rs. 1,050 crores (Rs. 106,623 lacs), EBITDA at Rs. 354.57 crores (Rs. 35,457 lacs), and PAT at Rs. 259.22 crores (Rs. 25,922 lacs).

• EBITDA margin for Q3 FY25 was 33.25%, with profit after tax slightly down year-over-year.

• 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.

• The company operates primarily in the manufacturing of High Chrome Mill Internals, with a global presence through subsidiaries and a joint venture.

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.

• Other operating income was INR 16 crores, mainly from export benefits; non-operating income included Rs. 5,872 lacs from investments and Rs. 859 lacs from forex gains.

• Raw material costs and freight rates have stabilized compared to previous quarters; raw material consumption for Q3 FY25 was Rs. 43,719 lacs.

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

Outlook and guidance

• Full-year volume is expected to be 250,000–260,000 tons, with incremental annual growth of 25,000–35,000 tons anticipated in coming years.

• 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 within 18 months.

• Management expects to return to a predictable growth path in the next two to three quarters.