Styrenix Performance Materials (506222) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw robust demand and significant growth in sales volume and revenue, with ongoing de-bottlenecking and expansion projects on schedule.

• Market leader in ABS and SAN, expanding in polystyrene and other polymer segments with a strong focus on specialties and OEM business.

• Ongoing capacity expansion to capture 8–10% polymer market growth, supported by robust R&D and a zero-debt balance sheet.

• Management emphasizes cost optimization, product mix improvement, and deeper penetration in automotive and household sectors.

• Unaudited financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by auditors with an unmodified conclusion.

Financial highlights

• Q1 FY25 total income rose to ₹701.2 Cr, up 16.7% sequentially and 28.5% year-over-year.

• Profit after tax reached ₹61.2 Cr, a 24% sequential increase and 88.6% year-over-year growth.

• Sales volume in Q1 FY25 was 48,055 MT, up from 39,933 MT in Q4 FY24 and 44,094 MT in Q1 FY24.

• PBDIT margin improved to 13.1% in Q1 FY25 from 12.4% in Q4 FY24 and 9.7% in Q1 FY24.

• EPS for Q1 FY25 stood at ₹34.8, up 24% sequentially and 88.6% year-over-year.

Outlook and guidance

• Volume guidance for FY25 remains at 15%-20% growth over the previous year, supported by ongoing de-bottlenecking.

• Polymer demand expected to grow over 10% YoY, with positive trends in household and automotive sectors.

• Q2 FY25 outlook anticipates average industry growth, with auto OEMs confident of sales recovery and household industry maintaining positive momentum.

• Additional volumes expected in Q2 and Q3 as de-bottlenecking progresses.

• No specific EBITDA margin guidance, but management expects continued improvement through capacity expansion, cost rationalization, and value-added products.