Schneider Electric Infrastructure (SCHNEIDER) Q2 24/25 earnings summary

Executive summary

• Achieved consistent double-digit growth in sales and orders for H1 FY25, with sales up 20.3% year-over-year and PAT up 32.1% year-over-year.

• Strong order inflow in transactional and transformer segments, leveraging a robust backlog for sustainable growth.

• Emphasized digitalization, sustainability, and customer-centric solutions, including new digital services and EcoCare subscription offerings.

• Margin expansion driven by better product mix, order pricing, volume leverage, and operational efficiency.

• Revenue from operations for Q2 FY25 was Rs. 59,971 lakh, up from Rs. 49,581 lakh in Q2 FY24, reflecting strong year-over-year growth.

Financial highlights

• Orders for H1 FY25 reached INR 1,104 crores, up 17.5% year-over-year; sales at INR 1,193 crores, up 20.3% year-over-year.

• Q2 FY25 sales at INR 600 crores, up 21% year-over-year; Q2 PAT increased 26.7% to INR 54.3 crores.

• Gross margin rose 30.1% to INR 472 crores; EBIT up 47.4% to INR 155 crores; PAT up 32.1% to INR 103 crores.

• Order backlog as of 30th Sept 2024 at INR 1,389 crores, up 14.3% year-over-year.

• Cash and cash equivalents as of September 30, 2024, were Rs. 13,954 lakh, a significant increase from Rs. 4,730 lakh as of March 31, 2024.

Outlook and guidance

• Strong order backlog and robust pipeline support confidence in future sales growth.

• H2 is expected to be stronger than H1, following historical trends.

• Focus on accelerating emerging segments, strengthening resilient segments, and promoting partners.

• Continued emphasis on modernization, digital services, and remote asset monitoring.

• Positive on long-term growth, driven by India's evolving energy landscape and investments in digital and sustainable solutions.