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, with EBITDA at INR 641 million (up 31%) and net profit at INR 448 million (up 35%).

• EBITDA margin stood at 11.29% and PAT margin at 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.

• The results reflect the amalgamation of Global Composites And Structurals Limited and Ion Exchange Environment Management Limited, effective 1 April 2023.

Financial highlights

• Standalone revenue from operations was INR 5,161 million, up 14.9% year-over-year; consolidated revenue was INR 5,676 million, up 18.4%.

• Standalone profit after tax was INR 4,583 lakhs, consolidated profit after tax was INR 4,478 lakhs, both up year-over-year.

• Engineering division revenue was INR 3,235 million, up 13% year-over-year, with EBIT at INR 188 million (up 26%).

• Chemical segment revenue was INR 1,994 million, up 36% year-over-year, with EBIT at INR 498 million (up 36%).

• Consumer division revenue was INR 660 million, up 9% year-over-year, but reported a loss of INR 34 million versus INR 15 million loss last year.

Outlook and guidance

• Engineering segment expected to see improved execution in H2 FY25, especially for the UP contract, as election-related delays subside.

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

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

• International markets, especially Middle East, Africa, and Southeast Asia, expected to drive future order inflows.

• The company awaits Central Government approval for the re-appointment of a Whole-time Director, with all documentation submitted.