Schneider Electric Infrastructure (SCHNEIDER) Q1 24/25 earnings summary

Executive summary

• Achieved strong Q1 FY25 performance with 19.7% year-over-year sales growth to INR 592.9 crore and a 19% increase in order intake, resulting in a backlog of INR 1,294 crore, up 15.6% from last year.

• Significant wins in digital transformation, product innovation, and overseas markets, including major orders in India, Nepal, Australia, and Qatar.

• Continued expansion in export markets, with orders from Nepal, Australia, and Qatar, contributing 7%-8% of backlog and 10%-15% of overall sales.

• Board approved unaudited financial results for Q1 FY25 and appointed a new Secretarial Auditor effective August 5, 2024.

• Audit Committee positively recommended all matters considered at the board meeting.

Financial highlights

• Q1 FY25 sales reached INR 592.9 crore, up 19.7% year-over-year.

• EBITDA rose to INR 84.3 crore (14.2% margin), up from INR 51.8 crore (10.5% margin) year-over-year.

• Profit after tax increased to INR 48.5 crore (8.2% margin), a 38.8% rise year-over-year.

• Gross/material margin improved by 3.6 points to 60.1% due to favorable product mix and cost optimization.

• Other expenses increased by 18%, with some one-off and provisioning items for future operational efficiency.

Outlook and guidance

• Management expects continued growth, driven by robust order inquiries, strong demand in power, grid, and data center segments, and ongoing digitalization efforts.

• Market outlook remains positive with a forecasted 17% increase in capital expenditure for FY25 and real GDP growth projected at 6.5-7%.

• Gross margins in the 30%-40% range are expected to be sustainable barring unforeseen circumstances.

• Kolkata factory commissioning anticipated in April FY26.

• Continued focus on sustainability, digital solutions, and expanding into new markets.