Borosil (BOROLTD) Q2 24/25 earnings summary

Executive summary

• Revenue from operations for H1 FY 2025 reached ₹490.7 crores, up 19.4% year-over-year, reflecting strong demand and effective strategy execution.

• Operating EBITDA for H1 FY 2025 was ₹86.9 crores, up 44.1% year-over-year, with an EBITDA margin of 16.8% versus 15.1% last year.

• Profit after tax for H1 FY 2025 was ₹27.6 crores, up 17.6% year-over-year, despite higher depreciation and finance costs due to new capacity and increased tax expense.

• The company successfully raised ₹150 crores via QIP, primarily used for loan repayments, improving the credit profile.

• Board approved unaudited financial results for the quarter and half year ended September 30, 2024, and appointed new independent directors.

Financial highlights

• Q2 FY25 net sales were ₹273.9 crores, up 16.6% year-over-year; EBITDA was ₹50.2 crores, up 27.7% year-over-year; PAT was ₹18.3 crores, impacted by higher taxation.

• Net debt reduced to ₹88.6 crores at period end from ₹111.5 crores in H1 FY24 after QIP proceeds utilization.

• Other income included ₹8.42 crores from shared service support, with related expenses in total expenses.

• Basic and diluted EPS for Q2 FY25 stood at ₹1.53, and for the half-year at ₹2.36.

• ICRA upgraded the long-term rating to AA- stable and reaffirmed short-term rating at A1+.

Outlook and guidance

• Management maintains a 15%-20% short- to medium-term revenue growth guidance, focusing on premiumization, new product development, and e-commerce acceleration.

• Capacity utilization for opalware is at 100% for Q2 and 85% for H1, with plans to optimize to full capacity within two years.

• No immediate plans for new CapEx in Gujarat; annual CapEx for FY 2025 estimated at ₹100 crores, split across solar projects, furnace rebuilds, and de-bottlenecking.

• QIP proceeds are being used for repayment/prepayment of loans and general corporate purposes, with unutilized funds temporarily invested in mutual funds.