Shaily Engineering Plastics (501423) Q3 24/25 earnings summary

Executive summary

• Achieved 25% year-on-year revenue growth in Q3 FY25 to INR 197.6 crores, with strong profit growth and margin expansion, driven by healthcare segment performance and new contract wins in healthcare and consumer segments.

• Healthcare segment revenue grew 52% year-on-year, supported by six new contracts for pen injectors and auto-injectors, with medical devices expected to comprise 30% of revenues in three years.

• Incorporated a new Dubai subsidiary to enhance global reach and testing capabilities, complementing the UK subsidiary's innovation and development activities.

• Participated in major industry exhibitions in Paris and Mumbai, enhancing visibility in healthcare and packaging.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on February 8, 2025.

Financial highlights

• Q3 FY25 consolidated revenue: INR 197.6 crores (up 25% YoY); EBITDA: INR 46.3 crores (up 40% YoY); EBITDA margin: 23.4% (up 260 bps YoY).

• Q3 FY25 PAT: INR 25.2 crores (up 73% YoY); PAT margin: 12.8% (up 360 bps YoY); EPS (consolidated, basic) for Q3 FY25 was ₹5.49, up from ₹3.17 in Q3 FY24.

• Nine-month FY25 revenue: INR 569 crores (up 20% YoY); EBITDA: INR 123.8 crores (up 42% YoY); PAT: INR 64.5 crores (up 70% YoY); Cash PAT for nine months: INR 95.6 crores (up 50% YoY).

• Standalone Q3 FY25 revenue up 29% YoY; PAT up 192% YoY.

• Standalone EBITDA for Q3 FY25 estimated from profit before tax and depreciation: ₹2,801.64 lakhs.

Outlook and guidance

• Machine utilization expected to rise from current 45% to around 80% in the next 2-3 years.

• Capacity expansion plans underway, with pen and auto-injector capacity targeted to increase from 35-40 million to 90-100 million units by December 2026, contingent on customer commitments.

• Medical devices projected to contribute 30% of revenues within three years, with growth driven by GLP-1 and other therapies.

• New business wins from global retail chains to commence supplies in Q1/Q2 FY26.

• Financial statements prepared in accordance with Indian Accounting Standards and SEBI guidelines.