Alicon Castalloy (531147) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 465 crores (₹46,374.84 lakhs) in Q2 FY25, marking the fourth consecutive quarter above INR 400 crores.

• H1 FY25 revenues rose 23% year-over-year to INR 905 crores (₹90,373.32 lakhs), driven by new order wins, scaling up of domestic two-wheeler volumes, and strong demand in aluminum alloy castings.

• PAT for H1 FY25 increased 49% year-over-year to INR 36 crores, reflecting improved profitability.

• Strategic focus on electrification, lightweighting, hybridization, automation, and a shift from as-cast to fully machined components is enhancing value addition and margin profile.

• Diversified portfolio now includes major global OEMs and a broader range of critical components.

Financial highlights

• Q2 FY25 revenue rose 22% year-over-year to INR 465 crores; H1 FY25 revenue up 23% to INR 905 crores.

• Q2 gross margin at 47.55%, down 253 bps year-over-year due to product mix shift; H1 gross margin at 48.8%.

• Q2 EBITDA increased 21% year-over-year to INR 57 crores, margin at 12.2%; H1 EBITDA up 32% to INR 115 crores, margin at 12.7%.

• Q2 PAT up 16% year-over-year to INR 17 crores; H1 PAT up 49% to INR 36 crores.

• Finance cost rose 11% year-over-year to INR 11 crores; depreciation up 26% to INR 23 crores.

Outlook and guidance

• FY25 revenue guidance of INR 1,800 crores (15% growth) maintained, with optimism for Q3 FY25 due to festive and wedding season demand in India.

• Monitoring OEM schedules for further clarity; cautious near-term outlook but optimistic on hybrid vehicle segment and carbon-neutral technologies.

• Medium-term targets of 15% EBITDA margin and 20% ROC remain on track despite short-term softness.