Privi Speciality Chemicals (PRIVISCL) Q3 24/25 earnings summary

Executive summary

• Achieved strong growth in Q3 and nine months FY25, with improved margins, productivity, and 33% volume growth despite global headwinds.

• Enhanced capacity for flagship products, developed continuous processes to reduce costs, and initiated co-manufacturing discussions with competitors.

• Significant demand for expanded capacities, with new greenfield project in partnership with Givaudan on track and PRIGIV JV facility inaugurated in October 2024.

• Focused on sustainability, improved ESG ratings, received Ecovadis Gold and Trishul Award for export excellence, and increased use of green power.

• Board approved unaudited financial results for Q3 and 9M FY25; reconstituted committees after director resignation.

Financial highlights

• Q3 FY25 revenue: Rs 49,087.12 lakhs, up over 20% YoY; EBITDA: Rs 115.00 Cr, up 20% YoY; PAT: Rs 4,447.45 lakhs, up 55% YoY; EBITDA margin: 23%.

• 9M FY25 revenue: Rs 1,493 crores, up 16% YoY; EBITDA: Rs 327 crores, up 29%; PAT: Rs 121 crores, up 90% YoY; exports at 65-70%.

• Gross profit margin near 52%; PAT margin improved to 9.0% from 7.0% YoY.

• EPS for 9M FY25 at Rs 30.84, up from Rs 16.27 YoY.

• Total volumes increased 28% YoY in Q3 FY25 and 33% YoY in 9M FY25.

Outlook and guidance

• Confident of maintaining at least 20% revenue growth for FY26, supported by strong order book and contracted business.

• Margins expected to be sustained or improved, with 70% of business already booked for the year.

• Price increases of 7-10% for various products to be reflected from Q4; volume growth expected around 15%.

• Capex of INR 250-300 crores planned over next 15-18 months for debottlenecking and new products.

• Growth strategy includes improving product mix, operational efficiencies, and global expansion.