Centum Electronics (517544) Q3 24/25 earnings summary

Executive summary

• Q3 consolidated revenue was INR 2,813m, down 5.7% YoY; EBITDA margin was 6.9%, and net loss was INR 193m, including an exceptional INR 193.05m Ausar provision.

• 9M consolidated revenue was INR 7,867m and EBITDA INR 551m; net loss was INR 235m. Standalone 9M revenue was INR 4,804m and net profit INR 232m.

• Canadian losses and delayed French project starts pressured margins; FY25 EBITDA expectation was reduced to INR 100cr, while Q4 improvement is expected from standalone build-to-spec growth.

Financial highlights

• Q3 consolidated revenue was INR 2,813m, down 5.7% YoY; EBITDA fell 32.6% to INR 194m and net loss was INR 193m.

• 9M consolidated revenue declined 0.9% YoY to INR 7,867m; EBITDA fell 18.7% to INR 551m, and net loss was INR 235m versus prior-year profit of INR 41m.

• Q3 standalone revenue was INR 1,807m, up 2.5% YoY; EBITDA was INR 213m, down 4.9%, and PAT was INR 91m, down 15.7%.

• 9M standalone revenue rose 3.5% to INR 4,804m; EBITDA fell 9.1% to INR 552m and PAT fell 15.6% to INR 232m.

• Net-basis contracts had gross value of INR 320m in Q3 and INR 706m for 9M; gross-value-adjusted revenue grew 13% QoQ consolidated and 16% standalone in Q3, and 6% consolidated and 16% standalone for 9M.

Outlook and guidance

• FY25 EBITDA expectation was cut to INR 100cr from INR 130cr; standalone Q4 revenue and margins are expected to improve, driven by high-margin build-to-spec projects.

• FY25 gross-accounting revenue growth expectation was 13%, versus the earlier 18%; standalone gross-accounting growth was expected at ~26%.

• FY26 standalone growth visibility remains strong; consolidated and subsidiary guidance was deferred pending decisions on Canada and customer discussions.

• Subsidiary margins are targeted at ~7% in the coming year and 11%-12% subsequently; FY26 EBITDA margin expectations were 13%-14% standalone and 6%-7% including Canada.