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%.

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

• Change in Company Secretary and Compliance Officer: Mr. Jeevan Mondkar resigned, and Mr. Drigesh Mittal was appointed effective October 25, 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.

• Q2 FY25 net profit was INR 110 Mn, down 28.1% YoY; H1 FY25 net profit was INR 258 Mn, down 5.8% YoY.

• Earnings per share (basic & diluted, not annualised) for the half year was ₹4.97, compared to ₹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 pressure expected to persist in Q3, especially in carpet and paper segments due to high freight and raw material costs.

• Management expects external headwinds to continue in the near term but remains optimistic for margin improvement as cost-saving measures and market conditions evolve.

• 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.