Apcotex Industries (APCOTEXIND) Q2 24/25 earnings summary

Executive summary

• Operating revenue for Q2 FY25 was INR 351 crore, up 26% year-over-year, with highest ever quarterly volume and export volume achieved.

• Net profit for Q2 was INR 11 crore, down 28% year-over-year, with PAT margin at 3.13%.

• For H1 FY25, operating revenue rose 23.5% year-over-year to INR 680 crore, with net profit at INR 26 crore, down 6%.

• Apcotex Industries operates two major facilities in Maharashtra and Gujarat, with a total synthetic latex capacity of 100,000 MTPA and nitrile latex of 50,000 MTPA.

• Audited financial results for the quarter and half year ended September 30, 2024, were approved by the Board on October 24, 2024.

Financial highlights

• Q2 FY25 operational revenue reached INR 3,511 Mn, up 25.8% YoY; H1 FY25 revenue was INR 6,877 Mn, up 23.5% YoY.

• Q2 FY25 EBITDA was INR 275 Mn, down 13% YoY; H1 FY25 EBITDA was INR 593 Mn, up 3.9% YoY.

• Net profit after tax for the half year was ₹2,575.44 lakhs, compared to ₹1,531.20 lakhs for the same period last year.

• Diluted EPS for H1 FY25 was INR 4.97, compared to INR 2.95 for the same period last year.

• Total comprehensive income for the half year was ₹4,016.48 lakhs, up from ₹3,802.37 lakhs year-over-year.

Outlook and guidance

• Margin pressures expected to persist in Q3, especially in carpet and paper segments due to high freight and raw material costs.

• Management remains optimistic for margin improvement in coming quarters, driven by cost-saving initiatives, specialty product focus, and potential anti-dumping duties.

• No major growth CapEx planned for this year; focus on R&D, maintenance, and debottlenecking.

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