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 operating income up 20% YoY to INR 12,120 million.

• Q2 EBITDA increased 13% YoY to INR 682 million (margin 10.58%); net profit up 19% YoY to INR 506 million (PAT margin 7.85%).

• H1 EBITDA up 21% YoY to INR 1,326 million (margin 10.94%); net profit up 26% YoY to INR 954 million (PAT margin 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.

• FY24 consolidated revenue mix: Engineering 60%, Chemicals 29%, Consumer Products 11%.

Financial highlights

• Consolidated revenue from operations for H1 FY25 was ₹121,204 lacs, up from ₹101,219 lacs year-over-year.

• Q2 FY25 consolidated operating income rose 20.9% YoY to INR 6,445 Mn; H1 FY25 at INR 12,120 Mn, up 19.7% YoY.

• Q2 FY25 consolidated PAT increased 19.3% YoY to INR 506 Mn; H1 FY25 PAT up 26% YoY to INR 954 Mn.

• Engineering division Q2 revenue: INR 3,949 million (+26% YoY); Chemicals division Q2 revenue: INR 1,968 million (+12% YoY); Consumer products Q2 revenue: INR 691 million (+20% YoY).

• Order inflow for H1: INR 726 crore; Q2 order inflow: INR 570-580 crore, nearly double YoY.

Outlook and guidance

• Management expects H2 to outperform H1, with 15%-20% full-year revenue growth anticipated.

• Engineering order book at Q2 end: INR 3,580 crore; robust inquiry bank with large-value opportunities expected.

• Roha resin plant expansion to commence commercial production in Q1 FY26; expected to double chemicals business in four years with INR 275 crore CapEx.

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

• Margins expected to remain at last year's levels due to ongoing impact from a specific engineering contract.