Sansera Engineering (SANSERA) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue of INR 7,634 million in Q2 FY25, up 10% YoY, driven by strong order execution, diversification, and expansion into new sectors like semiconductor equipment.

• Completed a QIP of INR 12,000 million, strengthening the balance sheet, enabling debt repayment, and supporting future growth and capacity expansion.

• Order book exceeds INR 20 billion, with over half from emerging businesses, expected to mature over the next 3 years.

• Strengthened leadership team and entered strategic partnerships, including an MOU for Airbus A220 components.

• Unaudited financial results for Q2 and H1 FY25 were approved with unmodified auditor review reports.

Financial highlights

• Q2 FY25 consolidated revenue rose 10% YoY to INR 7,634 million, with EBITDA up 13% YoY to INR 1,331 million and margin at 17.4%.

• PAT for Q2 FY25 was INR 516 million, with a margin of 6.8%; H1 FY25 PAT at INR 1,018 million.

• H1 FY25 consolidated revenue reached INR 15,073 million, up 11% YoY; EBITDA at INR 2,607 million.

• Net debt as of September 2024 was INR 8,797 million, with significant reduction expected post-QIP.

• Capex investment in H1 FY25 was INR 2,937 million.

Outlook and guidance

• Margin expansion expected as high-margin sectors ramp up and efficiency projects mature.

• Order book of INR 20 billion is diversified and expected to reach peak annual revenue in the next 3 years.

• Aerospace and defense segment targeted to grow at 40%-50% CAGR over 2-3 years; non-auto segment to recover and grow 35%-40% from Q1 FY26.

• Continued investment in associate MMRFIC Technology Pvt Ltd, with INR 250 million invested as of September 2024.