Ion Exchange (500214) Q3 24/25 earnings summary

Executive summary

• Consolidated Q3 FY25 operating income rose 24.7% year-over-year to INR 6,905 million, with EBITDA up 7% and net profit up 5% year-over-year; nine-month operating income increased 21.5% year-over-year to INR 19,026 million, EBITDA up 16%, and net profit up 18%.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on January 23, 2025.

• Results prepared in accordance with Ind AS 34 and reviewed by independent auditors, with no material misstatements identified.

• Operates 7 manufacturing and assembly facilities in India and several international locations, with a strong export presence (22% of FY24 revenue).

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

Financial highlights

• Q3 FY25 consolidated operating income was INR 6,905 million, up 24.7% YoY; nine-month income was INR 19,026 million, up 21.5% YoY.

• Q3 FY25 consolidated PAT was INR 496 million (up 5.1% YoY); nine-month PAT at INR 1,450 million (up 18% YoY).

• Q3 FY25 EBITDA margin was 10.92%, PAT margin 7.18%; nine-month EBITDA margin 10.93%, PAT margin 7.62%.

• Diluted EPS for nine months FY25 was INR 12.185, up 17.2% YoY.

• Engineering division Q3 revenue grew 34% YoY to INR 4,301 million; chemical segment revenue up 6% to INR 1,993 million; consumer products revenue up 23% to INR 772 million.

Outlook and guidance

• Engineering division expected to grow 15%-20% in FY 2025, but margins will be about 1 percentage point lower than FY 2024 due to an onerous contract.

• Chemical segment expects 10%-15% growth, with new Roha plant revenues likely from Q2 FY 2026.

• Company targets overall revenue growth of 15%-20% for FY 2025; margin percentages will be slightly below last year.

• Engineering order book as of Dec 31, 2024, stood at ~INR 3,405 crore, with a bid pipeline of ~INR 8,648 crore.

• Domestic enquiry bank remains steady, supporting future growth.