Lords Chloro Alkali (500284) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 total income rose 22.1% year-over-year to Rs. 65.53 crore, driven by higher caustic soda sales and new CPW product introduction.

• EBITDA for Q1 FY25 increased 141.8% to Rs. 5.03 crore, with margins improving to 7.68% from 3.88% in Q1 FY24.

• Profit after tax for Q1 FY25 was Rs. 1.95 crore, reversing a loss of Rs. 0.32 crore in Q1 FY24.

• Ongoing capex for capacity expansion and a new solar power plant is on track, expected to further enhance performance.

Financial highlights

• Revenue from operations in Q1 FY25 was Rs. 65.04 crore, up from Rs. 52.37 crore in Q1 FY24 and Rs. 62.47 crore in Q4 FY24.

• EBITDA margin improved by 380 bps year-over-year to 7.68%.

• PAT margin for Q1 FY25 stood at 2.98%, compared to a negative margin in Q1 FY24.

• Caustic soda lye volumes increased to 16,720 tonnes in Q1 FY25 from 15,642 tonnes in Q1 FY24.

Outlook and guidance

• Management expects continued robust demand and improved realizations, with new capacities coming online in H2 FY25.

• Solar power investment is anticipated to reduce power costs and support cost management.