Alicon Castalloy (531147) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 465 crores in Q2 FY25, marking the fourth consecutive quarter above INR 400 crores, driven by strong performance in passenger vehicles, two-wheelers, and new order wins.

• H1 FY25 revenues rose 23% year-over-year to INR 905 crores, with PAT up 49% to INR 36 crores, reflecting improved profitability.

• Strategic focus on electrification, lightweighting, hybridization, and automation is positioning the company for future growth.

• Diversified portfolio now includes a higher share of passenger and commercial vehicles, with global OEMs and Tier-one suppliers added to the customer base.

• Transitioning from as-cast to fully machined components, enhancing value addition and margin profile.

Financial highlights

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

• Q2 FY25 EBITDA rose 21% to INR 57 crores, with margin at 12.2%; H1 EBITDA up 32% to INR 115 crores.

• Q2 FY25 PAT increased 16% to INR 17 crores; H1 PAT up 49% to INR 36 crores.

• Gross margin compressed year-over-year due to higher share of two-wheeler components in product mix.

• CapEx for Q2 at INR 54 crores; H1 CapEx at INR 100 crores, with FY25 guidance of INR 150 crores.

Outlook and guidance

• FY25 revenue guidance of INR 1,800 crores (15% growth) maintained, but signs of demand softening in India, Europe, and USA are being closely monitored.

• Optimistic demand outlook for Q3 FY25, supported by festive and wedding season sales.

• Well-positioned in hybrid technologies, with strong engagements with Toyota and Maruti.

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

• FY26 revenue guidance to be updated next quarter as OEM schedules become clearer.