Cello World (CELLO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue and profit remained flat year-over-year, while H1 FY25 saw modest growth, with gross profit margin maintained at 52%-52.7%.

• Consumer wear/consumerware grew 5% year-over-year, while writing instruments declined due to export challenges; moulded furniture performance varied across periods.

• Export challenges, especially in writing instruments, were due to Russian sanctions and Red Sea disruptions.

• Operational excellence and strong channel expansion, especially online and modern trade, supported resilience.

• Commissioned a new glassware facility in Rajasthan, with trial production commenced and commercial sales expected soon.

Financial highlights

• H1 FY25 consolidated revenue: ₹99,071.73 lakhs (up from ₹96,073.79 lakhs YoY); Q2 FY25 revenue: INR 490 crore; EBITDA: INR 132 crore (27% margin); PAT: INR 82 crore (16.7% margin).

• H1 FY25 EBITDA: INR 267 crore (27% margin); PAT: INR 167 crore (17% margin); cash flow from operations: INR 65 crore.

• H1 FY25 EBITDA margin: 25.0%-27%; PAT margin: 16.6%-17%.

• Basic and diluted consolidated EPS for H1 FY25 was ₹7.58, up from ₹7.42 YoY.

• Cash from operations in H1 FY25 was ₹64.9 crore, down from ₹105.0 crore in H1 FY24, mainly due to higher working capital requirements.

Outlook and guidance

• Management expects improved results in H2 FY25, driven by festive demand and ramp-up of glassware production.

• Guidance for writing instruments remains at 12%-15% growth over the next 2-3 years.

• Full-year growth guidance revised slightly downward due to Q2 softness, but optimism remains for H2.

• Focus remains on operational excellence, channel expansion, and leveraging new manufacturing capacities.