Laxmi Organic Industries (LXCHEM) Q2 24/25 earnings summary

Executive summary

• Achieved double-digit year-on-year revenue and volume growth in Q2 and H1 FY25, despite challenging chemical industry and geopolitical conditions.

• Growth driven by operational excellence, capacity augmentation, and customer-centricity, expanding market share and entry into new industries.

• Specialty chemicals portfolio expanded to over 50 products, leveraging flexible, multi-purpose assets.

• Commercial production at the Fluoro-intermediates site expected in H2FY25, with revenue contribution anticipated.

• Dahej site project remains on schedule and within budget, with regulatory approvals progressing.

Financial highlights

• Q2FY25 consolidated revenue rose 18% year-on-year to INR 7,713 Mn; H1FY25 revenue up 8% to INR 14,894 Mn.

• Q2FY25 EBITDA increased 92% year-on-year to INR 747 Mn; H1FY25 EBITDA up 25% to INR 1,459 Mn.

• Q2FY25 PAT surged 162% year-on-year to INR 280 Mn; H1FY25 PAT up 27% to INR 624 Mn.

• Gross margin for Q2FY25 was 35.8%, up from 29.2% in Q2 last year; EBITDA margin rose 370bps to 9.7%.

• Basic EPS for H1FY25 stood at 2.26, up from 1.85 in H1FY24.

Outlook and guidance

• Targeting to double consolidated revenue and triple EBITDA by FY28, with a combined RoCE goal of 20%.

• Specialty fluoro intermediates expected to reach 10-15% of peak revenues in FY25, 40-60% in FY26, and full peak by FY27.

• Year-on-year growth expected to continue into Q3 FY25.

• Management expects continued growth following the merger of Yellowstone Fine Chemicals Pvt Ltd, pending NCLT approval.

• Incremental capex of INR 11,000 Mn planned to support expansion and new product launches.