SJS Enterprises (SJS) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever 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 and expanded presence in North America, Latin America, and Europe.

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

• Continued focus on ESG initiatives, including solar power agreements, sustainability integration, and community programs.

• Approved unaudited financial results for Q2 and H1 FY25 with unqualified auditor opinion.

Financial highlights

• Q2 FY25 consolidated revenue: INR 1,927.9 million (+18.1% YoY); H1 FY25: 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; net cash at INR 388.8 million as of September 30, 2024.

• Consolidated basic EPS for Q2 FY25: INR 9.34; total assets as of 30 Sep 2024: INR 7,877.70 million.

Outlook and guidance

• Targeting export contribution to reach 14%-15% of consolidated sales in next two years.

• Expects to outperform industry growth by over 1.5x in FY25, driven by premiumization, mega OEM accounts, exports, and WPI acquisition.

• Margin guidance maintained at 25%+, with focus on high-margin, high-tech products and operational efficiency.

• Exotech plant expansion to be commissioned by Q1 FY26; optical glass factory to start revenue in FY26.

• Asset held for sale: company decided to sell one land and building during the quarter.