Carborundum Universal (CARBORUNIV) Q2 24/25 earnings summary

Executive summary

• Consolidated Q2 FY25 sales reached INR 1,209 crores, the highest ever, up 7.6% year-over-year, with all segments contributing to growth.

• Standalone Q2 sales grew 9.6% year-over-year to INR 705 crores, with PAT at INR 86 crores, a 4.4% increase; all segments showed positive growth.

• H1 FY25 consolidated sales were INR 2,393 crores, up 3.4% year-over-year, with abrasives leading growth at 6.4%.

• Profit after tax for Q2 FY25 was INR 116 crores, up 13.7% year-over-year; H1 FY25 PAT grew 6.4% to INR 229 crores.

• The Board approved unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2024.

Financial highlights

• Q2 FY25 consolidated PBIT was INR 154 crores, up 9.2% year-over-year; PBIT margin improved to 12.8%.

• H1 FY25 consolidated PBIT was INR 304 crores, up from INR 296 crores in H1 FY24; PAT margin increased from 9.3% to 9.6%.

• Standalone PBIT for Q2 FY25 was INR 116 crores, up 4.4% year-over-year; H1 FY25 standalone PAT grew 2.2% to INR 180 crores.

• CapEx for H1 FY25 was INR 124 crores; consolidated debt reduced to INR 103 crores with a debt-to-equity ratio of 0.03.

• Consolidated EBITDA for Q2 FY25 was INR 202.6 crores; consolidated EPS (basic) was INR 6.09.

Outlook and guidance

• Full-year consolidated sales guidance maintained at INR 5,100–5,200 crores, with PAT expected around INR 500 crores.

• CapEx for FY25 revised to INR 300 crores due to timing differences; company expects to be debt-free.

• Consolidated PBIT margin guidance revised down by 100 bps due to underperformance in Awuko and Foskor Zirconia.

• Management continues to monitor geopolitical uncertainties, especially regarding the Russian subsidiary, but no adjustments are currently required.

• Growth expectations: abrasives 10%, ceramics 12–14%, electrominerals 5–6%.