Sandhar Technologies (SANDHAR) Q1 24/25 earnings summary

Executive summary

• Total income grew by 10% year-over-year in Q1 FY25, with consolidated revenue reaching ₹91,256.69 lacs and EBITDA margin improving by 75 basis points to 9.85%.

• Net profit after tax for Q1 FY25 was ₹2,906.29 lacs, up 35% year-over-year, and EPS stood at ₹4.83.

• All joint ventures turned positive at the EBT level, expected to contribute to future profitability.

• Overseas operations in Barcelona and Mexico achieved an overall EBITDA margin of 12.66%.

• The Board recommended a final dividend of ₹3.25 per equity share.

Financial highlights

• Q1 FY25 revenue reached INR 930 crore, up from INR 830 crore in Q1 FY24; consolidated total income was ₹91,725.49 lacs.

• EBITDA for Q1 FY25 was INR 50 crore, up from INR 41 crore in Q1 FY24; consolidated EBITDA up 19% to ₹90 Cr.

• Net debt reduced from INR 592 crore at March-end to INR 549 crore at Q1-end, on track for a INR 100 crore reduction target.

• Q1 CapEx was INR 44 crore; full-year CapEx planned at up to INR 250 crore.

• Earnings per share (EPS) for Q1 FY25: consolidated ₹4.83.

Outlook and guidance

• Two-wheeler segment expected to grow over 10% in FY25, with company growth anticipated to outpace the industry.

• EV product lines (motor controllers, battery chargers, DC-DC converters) are in advanced stages, with mass production scheduled between July and December 2024.

• EBITDA margin guidance: 50 basis points improvement per year, targeting 10.45% in FY25 and close to 11% in FY26.

• Major CapEx cycle to conclude by September 2024; FY26 CapEx to align with annual depreciation (~INR 100 crore).

• The Board has recommended a final dividend of ₹3.25 per share.