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%.

• Leading Indian producer of synthetic rubber and latex, with a broad emulsion polymer portfolio and global presence.

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

Financial highlights

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

• Q1 FY25 EBITDA was INR 318 Mn, up 24.7% YoY; EBITDA margin at 9.45%.

• Q1 FY25 PAT stood at INR 148 Mn, up 22.3% YoY; PAT margin at 4.40%.

• Volume growth was 14% year-over-year, with export volumes up 12%.

• 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.

• Export revenue now constitutes 30% of total revenue, up 18% YoY.