Electrosteel Castings (500128) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated total income rose 18.9% YoY to INR 2,036.01 crore; EBITDA increased 101.6% to INR 378 crore and PAT rose 201.7% to INR 226.04 crore.

• Strong domestic demand, scale benefits and operating efficiencies supported growth and margin expansion.

Financial highlights

• Consolidated revenue was INR 2,011.90 crore versus INR 1,685.04 crore in Q1 FY24; gross profit rose 30.6% to INR 1,020 crore, with gross margin up 446 bps to 50.1%.

• Consolidated EBITDA margin expanded 761 bps to 18.5%; EBIT rose 120.2% to INR 346 crore, while finance cost declined 27.5% to INR 41 crore.

• Standalone total income increased 21% to INR 1,851 crore; EBITDA rose 91.9% to INR 354 crore and PAT increased 160.9% to INR 212 crore.

• Standalone EBITDA margin reached 19.1%, up 705 bps; PAT margin was 11.5%, up 615 bps YoY.

Outlook and guidance

• FY25 DI pipe sales volume is expected at ~8.5 lakh tonnes; management expects to sell most of the additional capacity coming on stream.

• Capacity expansion targets 10 lakh tonnes per annum by FY26; ongoing facilities are expected to commission by end-Q3, with some benefit from Q4.

• Management expects export contribution to return toward 20%; Q1 exports were reduced by design amid stronger domestic demand and volatile freight costs.

• Management said current EBITDA-per-tonne tailwinds could persist and endorsed ~INR 15,000 per tonne as maintainable, without giving a full-year figure; fittings contribution target is 5%–10% versus 4%–5% currently.