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 593 crore and 19% order growth to INR 531 crore, supported by a robust order backlog of INR 1,300 crore, up 15.5%-16% from last year.

• EBITDA margin improved by 3.8 percentage points to 14.2% due to better product mix and operational efficiency.

• Focused on digitalization, product innovation, and operational efficiency, with significant wins in data centers, renewables, and export markets.

• 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 the quarter ended June 30, 2024, and appointed a new Secretarial Auditor effective August 5, 2024.

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), a 62.8% increase year-over-year.

• EBIT grew 68% to INR 78.4 crore, PBT up 86.9%, and PAT up 64.9% year-over-year.

• Gross/material margin improved by 3.6 points to 40.3% in Q1 FY25.

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

Outlook and guidance

• Management expects continued growth, driven by strong order inflow, robust demand in data centers, infrastructure, and electro-intensive sectors.

• Indian capital expenditure expected to rise 17% in FY25, supporting infrastructure and renewables.

• Real GDP growth forecast at 6.5-7% for FY25, with strong government focus on sustainability and energy efficiency.

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

• Kolkata factory commissioning targeted for April FY26.