Shaily Engineering Plastics (501423) Q2 24/25 earnings summary

Executive summary

• Achieved 22% year-on-year revenue growth in Q2 FY25 to INR 192 crores, driven by strong healthcare and industrial segment performance, with expanded business in healthcare, automotive, and consumer segments.

• Healthcare segment revenue surged 94% year-on-year, now a key growth driver with scalable business model and expanded team in the UK.

• Maintained a diversified business model with robust manufacturing capabilities and global client relationships.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were reviewed and approved by the Board on 28 October 2024.

• Statutory auditors conducted a limited review and found no material misstatements in the financial disclosures.

Financial highlights

• Q2 FY25 revenue: INR 192 crores (22% YoY growth); EBITDA: INR 41.3 crores (56% YoY growth); EBITDA margin: 21.5% (+460 bps YoY); PAT: INR 21.9 crores (103% YoY growth); PAT margin: 11.4% (+450 bps YoY).

• H1 FY25 revenue: INR 371.4 crores (18% YoY growth); EBITDA: INR 77.4 crores (43% YoY growth); PAT: INR 39.3 crores (68% YoY growth).

• Cash PAT for Q2 FY25: INR 32.2 crores (70% YoY growth); H1 FY25: INR 59.7 crores (50% YoY growth).

• Gross profit margin expanded by 840 bps in Q2 FY25 and 480 bps in H1 FY25.

• Basic EPS (consolidated) for Q2 FY25 was ₹4.78, up from ₹2.36 in Q2 FY24; H1 FY25 EPS was ₹8.58, up from ₹5.11 year-over-year.

Outlook and guidance

• Healthcare expected to comprise 25% of revenues in 2-3 years, with medical device business scaling up.

• Pen volumes in healthcare expected to double in H2 FY25 as new tooling comes online; multiple launches for Terry, Lira, and Sema expected in FY26-27.

• Capacity expansions underway for insulin and semaglutide pens, targeting 35 million units each.

• Utilization rates expected to rise to 55-60% by FY25 exit and 70-80% by FY26 exit.

• Continued focus on expanding healthcare and automotive segments, leveraging new business wins and global partnerships.