Apcotex Industries (APCOTEXIND) Q1 24/25 earnings summary

Executive summary

• Operating income for Q1 FY25 reached INR 237 crore, up 21% year-over-year, driven by higher volumes, improved product mix, and better price realization.

• EBITDA grew 25% year-over-year to INR 32 crore, with an EBITDA margin of 9.44%.

• Net profit after tax was INR 14.8 crore, up 22% year-over-year, with a net margin of 4.4%.

• Audited financial results for the quarter ended June 30, 2024, were approved by the Board on July 26, 2024.

• Financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by independent auditors.

Financial highlights

• Q1 FY25 operational revenue reached INR 3,366 Mn, up 21.2% year-over-year and 8.4% sequentially.

• EBITDA for Q1 FY25 was INR 318 Mn, a 24.7% increase year-over-year; EBITDA margin at 9.45%.

• Net profit for Q1 FY25 rose 22.3% year-over-year to INR 148 Mn; net profit margin at 4.40%.

• Export volumes grew 12% and export revenue increased 18% year-over-year, now comprising 30% of total revenue.

• Revenue and volumes have rebounded to pre-industry issue levels, with the highest quarterly revenue achieved.

Outlook and guidance

• Margins are expected to improve gradually as industry cycles normalize and capacity utilization increases.

• Management anticipates asset turnover and margins to return to historical highs as new capacities ramp up.

• No immediate plans for major CapEx until margin environment improves; focus remains on R&D and incremental capacity for styrene butadiene latex.

• Profit growth trajectory highlighted: +100% in FY22, +150% in FY23, +175% in FY24, and projected +200% in FY25.