Centum Electronics (517544) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was INR 2,459 Mn, down 0.6% YoY; adjusted for Ind AS 115 net accounting, revenue was INR 2,645 Mn, up 7%.

• Consolidated EBITDA was INR 156 Mn and net loss was INR 38.43 Mn; the order book stood at INR 16,740 Mn as of June 30, 2024.

• FY25 gross-basis growth guidance remains 18%–20%, with H2 expected to bring stronger BTS billing and margin recovery.

Financial highlights

• Consolidated EBITDA declined 26.1% YoY to INR 156 Mn; net loss was INR 38.43 Mn versus net profit of INR 14.49 Mn in Q1 FY24.

• Standalone revenue was INR 1,333 Mn, up 4.1% YoY; EBITDA was INR 128 Mn and PAT was INR 45 Mn, down 26.9% and 36.6%, respectively.

• Total income was INR 2,471.32 Mn; total expenses were INR 2,501.58 Mn and EPS was a loss of INR 2.45.

• Consolidated EBITDA margin was 6.34%; standalone EBITDA margin was 9.60%.

Outlook and guidance

• FY25 consolidated revenue growth target remains 18%–20% on a gross basis; net accounting is expected to reduce reported top-line growth by ~5%–6%.

• FY25 EBITDA margin targets are 13%+ standalone and 10%–12% consolidated; a 10%–11% consolidated target was also reiterated, excluding other income.

• Management expects ~70% of BTS defense invoicing in H2, with most margin recovery in Q3 and Q4; some domestic BTS deliveries shifted to H2.

• Medium-term consolidated EBITDA margin objective is 13%–15%, supported by subsidiary improvement and higher BTS contribution.