Craftsman Automation (CRAFTSMAN) Q2 24/25 earnings summary

Executive summary

• H1 performance was slightly lower year-over-year due to extraordinary expenses from two new plants and major acquisitions.

• Three major acquisitions completed: Fronberg (Germany), Sunbeam (India), and DR Axion, expanding global reach and customer base.

• Sunbeam acquisition transitioned from an asset deal to a full company buyout, with CCI approval and integration underway.

• Consolidated revenue from operations for Q2 FY25 was ₹121,395 lakhs, up from ₹115,119 lakhs in Q1 FY25 and ₹117,906 lakhs in Q2 FY24.

• Profit for the period stood at ₹6,169 lakhs, compared to ₹5,949 lakhs in Q1 FY25 and ₹10,449 lakhs in Q2 FY24.

Financial highlights

• H1 EBITDA dropped 8-10% year-over-year, mainly due to unallocated expenses from new plants and acquisition-related costs.

• EBITDA for Q2 FY25 was supported by higher segmental profits, especially in Aluminium Products and Powertrain.

• Standalone debt stands at INR 1,600 crore, expected to reduce to INR 1,200 crore after Sunbeam land sale.

• Net cash from operating activities for H1 FY25 was negative at ₹36,452 lakhs, compared to positive ₹16,796 lakhs in H1 FY24.

• CapEx for FY2025 guided at INR 850 crore for standalone operations, excluding subsidiaries.

Outlook and guidance

• No formal revenue guidance, but consolidated revenue expected to surpass INR 7,000 crore in FY2026.

• Sunbeam EBITDA targeted at 8-10% post-restructuring; overall blended EBITDA margin expected at 17-18%.

• Management completed a QIP raising ₹120,000 lakhs, fully utilized for debt repayment, acquisition, and general corporate purposes.

• DR Axion expected to remain flat this year, with growth anticipated next year from exports.

• CapEx to be muted after FY2025, with focus on organic growth and operational synergies.