Dynamatic Technologies (505242) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 revenue declined 4.5% year-over-year to Rs. 3,462.8 mn, with EBITDA up 8.2% to Rs. 400.5 mn and normalized PAT up 69.0% to Rs. 113.9 mn, driven by improved operating profit and lower interest and tax expenses.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2024, with statutory auditors issuing an unmodified review conclusion.

• Aerospace segment became the largest contributor, with strong margin performance and a robust order book despite global supply chain disruptions.

Financial highlights

• Consolidated revenue from operations was ₹34,628 lakhs, down from ₹37,041 lakhs in the previous quarter and ₹36,251 lakhs year-over-year.

• EBITDA: Rs. 400.5 mn, up 8.2%; EBITDA margin: 11.6%, up 136 bps; EBIT: Rs. 227.2 mn, up 7.7%; EBIT margin: 6.6%, up 74 bps.

• Normalized PAT: Rs. 113.9 mn, up 69.0% year-over-year; Normalized EPS: Rs. 16.77, up 69.1%.

• Gross margin improved to 54.2% in Q1 FY2025; consolidated gross margin was approximately 52.9%.

• Standalone revenue from operations was ₹14,829 lakhs, up from ₹14,551 lakhs in the previous quarter and ₹12,846 lakhs year-over-year.

Outlook and guidance

• Aerospace: Large orders secured, with potential to double business in 30 months; continued industrialization of new programs.

• Hydraulics: Indian market outlook strong due to good monsoon and construction demand; focus on operational efficiency and product innovation.

• Metallurgy: Performance to depend on raw material availability, commodity prices, and financing costs; focus on high-margin products and aerospace transition.

• No explicit forward-looking guidance provided, but results reflect ongoing restructuring and asset sales impacting quarterly performance.