Tega Industries (TEGA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 group revenues reached INR 352 crores (₹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 progressing as planned, contributing to diversified product offerings and strong employee engagement.

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

• Construction for the Chile project has commenced, with commercial production targeted for June 2025.

Financial highlights

• Revenue from operations grew 72% year-over-year to INR 340 crores, with consolidated revenue at ₹3,399.76 million.

• Consumables segment revenue rose 26% to INR 305 crores; equipment segment revenue declined to INR 36 crores from INR 44 crores.

• Group operating EBITDA increased to INR 64 crores from INR 39 crores, with margin improving to 19% from 15% year-over-year.

• EPS for Q1 FY25 rose to 5.52 from 3.22 in Q1 FY24.

• Gross profit margin improved to 59.5% in Q1 FY25 from 58.6% in Q1 FY24.

Outlook and guidance

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

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

• Copper and gold remain core focus, with positive outlook for copper as new projects come online.

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

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