Elgi Equipments (ELGIEQUIP) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue reached ₹8,688.62 million, up 8-9% year-over-year, with PAT at ₹947.22 million, reflecting strong growth in India and improving trends in Europe and North America.

• EBITDA for Q2 FY25 was slightly lower year-over-year at ₹1,284.42–1,418 million due to increased overheads and strategic investments, while profitability remained robust.

• Sales growth was driven by improved product mix, expansion in over 120 countries, and strong India performance.

• Strategic initiatives, including go-to-market and finance transformation, contributed to higher costs but are expected to yield future benefits.

• The group divested G3 Industrial Solutions LLC and CS Industrial Services, LLC, and classified PLA Holding Company LLC as held for sale.

Financial highlights

• Revenue grew 8-9% year-over-year, with Q2 FY25 at ₹8,688.62–8,689 million and H1 FY25 at ₹16,976.10 million.

• PAT for Q2 FY25 was ₹947.22 million, up from ₹912.88 million in Q2 FY24.

• EBITDA for Q2 FY25 was ₹1,284.42–1,418 million, nearly flat year-over-year.

• EPS for Q2 FY25 was ₹2.99 (consolidated), up from ₹2.89 in Q2 FY24.

• Net cash position improved to ₹1,897 million, with debt reduced to ₹4,537 million by September 2024.

Outlook and guidance

• Q3 is expected to replicate Q2 performance, with Q4 anticipated to be better.

• Headwinds are expected in India’s water well segment, but new go-to-market initiatives and strong aftermarket business may offset this.

• Europe is expected to remain strong, America to recover, and Australia to improve in the second half.