Elgi Equipments (ELGIEQUIP) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue increased by 3% year-over-year to INR 8,476 Mn, with consolidated sales at ₹8,475.88 million and standalone sales up 7% to ₹4,977.99 million; growth was driven by product mix improvements and strong performance in India and the Middle East, while US, Australia, and SE Asia remained subdued.

• EBITDA for Q3 FY25 was INR 1,230 Mn, impacted by higher employee and other expenses despite sales growth.

• Profit before tax (PBT) declined 5% year-over-year to INR 1,106 Mn, with consolidated PAT at ₹805.82 million and standalone PAT at ₹800.98 million.

• Net cash position improved to INR 3,627 Mn as of Dec 2024, reflecting strong liquidity.

• New patented stabilizer technology and a low-cost compressor range were launched to drive future growth and address competition.

Financial highlights

• Q3 FY25 consolidated revenue: ₹8,475.88 million; standalone: ₹4,977.99 million; nine months consolidated: ₹25,175.10 million.

• EBITDA: INR 1,230 Mn in Q3 FY25 vs INR 1,306 Mn in Q3 FY24.

• PAT for Q3 FY25: INR 932 Mn, consolidated net profit: ₹805.82 million; EPS for Q3 FY25: 2.55.

• Net cash position at INR 3,627 Mn as of Dec 2024, up from INR 2,140 Mn in Mar 2024.

• Missed revenue of INR 15 crore in Q3 due to GST portal downtime, with sales rolling over to January.

Outlook and guidance

• Q4 performance is expected to improve, supported by typical year-end demand and non-recurring costs in Q3.

• Product innovation, such as the Stabilisor system, is expected to drive operational efficiency and customer savings.

• Europe and North America are expected to break even at EBITDA level in the next financial year.

• Domestic market growth is projected at 9-10% annually, with new products potentially adding 3-4% extra growth.