SJS Enterprises (SJS) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 1,927.9 million in Q2 FY25, up 18.1% YoY, and H1 FY25 revenue of INR 3,814.1 million, up 36% YoY, driven by strong growth in auto, consumer, and export segments.

• EBITDA margin improved to 26.6% in Q2 FY25, a 370 bps YoY increase, with PAT rising 51% YoY to INR 291.5 million and PAT margin at 15.1%.

• Export business grew 54.7% YoY in Q2 FY25, with significant new orders from global OEMs.

• Achieved debt-free status after repaying INR 300 million term loan and maintains strong net cash position.

• Approved unaudited financial results for Q2 and H1 FY25, with statutory auditor's unqualified opinion.

Financial highlights

• Q2 FY25 revenue: INR 1,927.9 million (+18.1% YoY); H1 FY25 revenue: INR 3,814.1 million (+36% YoY).

• Q2 FY25 EBITDA: INR 517 million (+37.1% YoY); EBITDA margin: 26.6%.

• Q2 FY25 PAT: INR 291.5 million (+51% YoY); PAT margin: 15.1%.

• Free cash flow for H1 FY25: INR 663.2 million; cash and equivalents at INR 491.3 million as of September 30, 2024.

• Net cash at INR 388.8 million as of September 30, 2024.

Outlook and guidance

• Targeting export contribution of 14%-15% of consolidated sales over the next two years, up from 8.5% in Q2.

• Margins guided to remain at or above 25%, with potential upside from export growth.

• Over 85% of FY25 forecasted revenue already in the order book.

• Capacity expansion at Exotech underway, with new plant commissioning targeted for Q1 FY26.

• Monetization of a vacant plant in Bengaluru and asset held for sale to strengthen financials.