AXISCADES Technologies (532395) Q2 23/24 earnings summary

Executive summary

• Q2 FY24 revenue reached ₹25,146.25 lakh, up 29.8% YoY; EBITDA was ₹358 Mn and PAT was ₹1,117.25 lakh.

• H1 FY24 revenue was ₹4,651 crore, up 23.4% YoY; growth was supported by aerospace, automotive, energy and defense.

• Margins faced pressure from annual increments, hiring, digital investment, bench resources, material costs and client plant closures.

• add solution GmbH was acquired; the Epcogen acquisition was underway, alongside investment in capabilities and partnerships.

Financial highlights

• Q2 revenue was ₹25,146.25 lakh, up 29.8% YoY and 17.7% QoQ; H1 revenue was ₹46,510.10 lakh, up 23.4% YoY.

• Q2 EBITDA was ₹358 Mn at a 14.28% margin; H1 EBITDA was ₹68.9 crore at a 14.81% margin.

• Q2 PAT was ₹1,117.25 lakh versus ₹2,108.20 lakh a year earlier; H1 PAT was ₹1,688.15 lakh versus a loss of ₹106 Mn in H1 FY23.

• Q2 basic and diluted EPS were ₹2.89 and ₹2.63; H1 basic and diluted EPS were ₹4.36 and ₹3.96.

• New-customer revenue was 5% of H1 revenue versus 1% a year earlier; top five new customers contributed ₹26 crore versus ₹4 crore.

Outlook and guidance

• Management expects improved financial performance in coming quarters, but provided no specific revenue or margin guidance; margin ambition is 18% within two to three financial years.

• Management aims to exceed industry growth rates of 15%–16%, prioritizing strategic customers and account mining.

• Aerospace outlook remained positive on program ramp-ups; defense pipeline and orderbook were expected to support growth over the next few years.

• Product Engineering Services faced a softer H2 FY24 due to customer overstocking; production volumes were expected to normalize by mid-next year.

• Epcogen was expected to deepen energy capabilities and extend market access to the Middle East and North America, subject to acquisition conditions.