Centum Electronics (517544) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated operational revenue was INR 2,598 Mn, up 4.7% YoY; EBITDA was INR 203 Mn, up 18%, and PAT was a loss of INR 3 Mn.

• H1 consolidated operational revenue was INR 5,053 Mn, up 1.9% YoY; EBITDA was INR 358 Mn, down 8%, and net loss was INR 41.55 Mn.

• Order book stood at INR 17,720 Mn at 30 Sep 2024, excluding EMS client forecasts and signed LOIs for Transportation products.

Financial highlights

• Q2 standalone revenue was INR 1,667 Mn, up 4.2% YoY; EBITDA was INR 205 Mn, down 2.8%, and PAT was INR 96 Mn.

• H1 standalone revenue was INR 2,996 Mn; EBITDA was INR 333 Mn, down 13.5%, and PAT was INR 141 Mn, down 15.6%.

• Q2 consolidated PBT was INR 28.97 Mn, versus a loss of INR 21.19 Mn YoY.

• Consolidated finance cost was INR 77 Mn in Q2, down 15.4% YoY; H1 finance cost was INR 153 Mn, down 11.0%.

Outlook and guidance

• FY25 consolidated revenue growth target remains 18%-20% on a gross accounting basis; net accounting would imply 14%-15% growth.

• FY25 EBITDA target is INR 130 crore, excluding other income; stronger H2 performance is expected from BTS deliveries, EMS and improved subsidiary performance.

• Management expects EBITDA margins of 14%-15% over the next 2-3 years through stepwise improvement; BTS deliveries are seasonal and lumpy.

• The subsidiary is expected to contribute positively in Q3 and Q4; Q2 is seasonally slowest and Q4 typically strongest due to working days.