Shaily Engineering Plastics (501423) Q1 24/25 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth in Q1 FY25, reaching INR 179.4 crore, with improved gross and EBITDA margins at 42.1% and 20.1% respectively.

• Secured significant new business in FMCG, healthcare (notably pen injectors), industrial, home furnishing, and automotive segments, including a major insulin pen order of 10 million units annually.

• Shaily U.K. continues strong growth, focusing on pharma and drug delivery device development, with a robust project pipeline.

• Strategic focus on expanding contract manufacturing for medical devices, increasing proprietary IP contributions, and product diversification.

• Financial results for Q1 FY25 were reviewed by the Audit Committee and approved by the Board on July 27, 2024.

Financial highlights

• Consolidated Q1 FY25 revenue reached INR 179.4 crore, up 14% year-over-year; standalone revenue at INR 169.0 crore, up 11%.

• EBITDA grew 31% year-over-year to INR 36.1 crore, with margin improvement to 20.1%.

• PAT increased 39% year-over-year to INR 17.4 crore, with PAT margin rising to 9.7%.

• Cash PAT rose 33% to INR 27.6 crore; cash PAT margin at 15.4%.

• EPS for Q1 FY25 improved to ₹3.80 (basic) and ₹3.79 (diluted) after share split.

Outlook and guidance

• Expectation of higher revenue growth from Q2 onwards as new orders begin contributing.

• Healthcare segment projected to see strong, back-ended volume growth, with new launches and order book strength.

• Plans to expand device capacity over the next 18-24 months, especially for pen platforms.

• Focus on increasing own IP, contract manufacturing, and export business.