Ion Exchange (500214) Q1 24/25 earnings summary

Executive summary

• Consolidated operating income for Q1 FY25 was INR 5,676 million, up 18.4% year-over-year.

• EBITDA rose 31% year-over-year to INR 641 million, with an EBITDA margin of 11.29%.

• Net profit increased 35% year-over-year to INR 448 million, with a PAT margin of 7.89%.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved by the Board on 2 August 2024.

• Management transition planned for October 2024, with professional management taking over operational roles.

Financial highlights

• Standalone revenue from operations was ₹51,609 lakhs, up from ₹44,914 lakhs year-over-year.

• Consolidated revenue from operations reached ₹56,757 lakhs, up from ₹47,922 lakhs year-over-year.

• Standalone profit after tax was ₹4,583 lakhs, compared to ₹3,887 lakhs in the same quarter last year.

• Consolidated profit after tax was ₹4,478 lakhs, up from ₹3,332 lakhs year-over-year.

• Diluted EPS for Q1 FY25 was INR 3.792 (consolidated), up 35.1% year-over-year.

Outlook and guidance

• Engineering segment expected to see improved execution and order inflows in coming quarters, especially for large EPC jobs.

• Substantial execution of the UP contract anticipated by end of FY25, with improved cash flows post-election.

• Chemical segment guided for 15% revenue growth for FY25, with margins expected to remain robust barring major input or FX changes.

• Roha chemical plant commercial operations expected to start next financial year, reaching optimum capacity in 3-4 years.

• New product launches in consumer segment gaining market acceptance.