Ion Exchange (500214) Q2 24/25 earnings summary

Executive summary

• Consolidated Q2 FY25 operating income rose 21% YoY to INR 6,445 million; H1 FY25 up 20% YoY to INR 12,120 million.

• Q2 EBITDA increased 13% YoY to INR 682 million; H1 EBITDA up 21% YoY to INR 1,326 million.

• Q2 net profit grew 19% YoY to INR 506 million; H1 net profit up 26% YoY to INR 954 million.

• PAT margin for Q2 at 7.85%, H1 at 7.87%.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved by the Board on 12th November 2024.

Financial highlights

• H1 FY25 consolidated revenue from operations was ₹121,204 lacs, up from ₹101,219 lacs YoY.

• Q2 FY25 consolidated EBITDA margin at 10.58%; H1 FY25 at 10.94%.

• Diluted EPS for H1 FY25 at INR 8.089, up 26.6% YoY.

• Engineering division Q2 revenue INR 3,949 million (+26% YoY), EBIT INR 235 million (+21% YoY).

• Chemicals division Q2 revenue INR 1,968 million (+12% YoY), EBIT INR 522 million (+23% YoY).

Outlook and guidance

• Engineering division expects continued momentum with robust domestic inquiry bank and large-value opportunities.

• H2 expected to be significantly better than H1, with anticipated 15%-20% full-year revenue growth.

• Roha resin plant expansion to commence commercial production in Q1 FY26; expected to double chemicals business in four years.

• Consumer business targeted to grow ~30% in FY25, aiming for INR 500 crore turnover in the near future.