Eureka Forbes (543482) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 9.4% year-over-year to INR 552.8 crore, with 10.8% growth in continuing business and broad-based gains across Water Purifier, Vacuum Cleaner, and service categories, driven by premium products.

• Product business achieved high teens revenue growth, and service business delivered double-digit growth, supported by transformation initiatives and improved customer satisfaction.

• Standalone and consolidated financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on August 8, 2024, in accordance with Indian Accounting Standards and SEBI regulations.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹55,281.14 lakhs, up from ₹50,527.44 lakhs in Q1 FY24; consolidated revenue was ₹55,337.88 lakhs, up from ₹50,481.13 lakhs.

• Adjusted EBITDA margin reached a record 11.5%, up 166 basis points year-over-year; adjusted EBITDA increased 27.9% to Rs 63.4Cr.

• PAT grew 40.7% year-over-year to Rs 31.0Cr; standalone profit after tax for Q1 FY25 was ₹3,103.89 lakhs, consolidated PAT was ₹3,215.56 lakhs.

• Expenses as a percentage of revenue (excluding ESOP) declined by 156 basis points year-over-year.

• Non-cash ESOP charges were INR 8.7 crore, down from INR 9.2 crore in the previous quarter; employee benefit expense for Q1 FY25 included ₹866.18 lakhs for equity-settled share-based payments.

Outlook and guidance

• Demand sentiment expected to remain muted in the short term due to persistent food inflation and consumer wallet diversion to summer products.

• Management expresses strong conviction in strategy for sustained and profitable growth, with continued focus on health and hygiene products and services.

• Continued focus on executing phase two of transformation strategy, driving innovation, customer experience, and service transformation.

• Growth investments, especially in advertising and sales promotion, will continue to be stepped up.