Tega Industries (TEGA) Q1 24/25 earnings summary

Executive summary

• Group revenues for Q1 FY25 reached INR 352 crores (Rs. 3,400 mn), up 26.8% year-over-year, driven by spillover from Q4 FY24 and higher service income.

• PAT for Q1 FY25 rose 71.8% to Rs. 367 mn, with EBITDA at INR 76 crores and margin of 21%.

• Integration of Tega McNally is progressing as planned, with a major NMDC order secured and the first full quarter of results included.

• Order book stands at INR 560 crores (Rs. 5,530 mn) as of June 2024, excluding long-term NMDC orders.

• Construction for the Chile project has commenced, targeting commercial production by June 2025.

Financial highlights

• Revenue from operations grew 72% year-over-year to INR 340 crores (Rs. 3,400 mn consolidated).

• Consumables segment revenue was INR 305 crores (₹3,045.82 million); equipment segment revenue was INR 36 crores (₹360.40 million).

• Group operating EBITDA increased to INR 64 crores (Rs. 642 mn), with margin improving to 19% from 15%.

• EPS for Q1 FY25 rose to 5.52 from 3.22 year-over-year.

• PAT margin improved to 10.8% from 8.0% year-over-year.

Outlook and guidance

• Revenue growth guidance maintained at 15% average, with blended EBITDA margin of 20-21%.

• Copper and gold markets expected to remain strong, with positive outlook for FY25 and FY26.

• Plans to capitalize on mining demand, expand in high-growth markets, and launch new sensor-based and recycling products.

• Focus on capacity expansion through greenfield and brownfield projects, leveraging free cash flows.

• Equipment business expected to recover as delayed revenues are recognized in Q2.