Advanced Enzyme Technologies (ADVENZYMES) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue rose 5% year-over-year to ₹1,545 million, with EBITDA up 16% to ₹512 million and PAT up 19% to ₹350 million; sequentially, revenue declined 2% and EBITDA fell 8%, but PAT increased 17% from the previous quarter.

• FY24 saw revenue grow 15% to ₹6,239 million, EBITDA up 31% to ₹2,045 million, and PAT up 32% to ₹1,370 million year-over-year.

• Standalone and consolidated unaudited financial results for Q1 FY25 were reviewed and approved by the Board and Audit Committee, with auditors expressing an unmodified conclusion.

Financial highlights

• Q1 FY25 EBITDA margin was 33% and PAT margin 23%; EPS was ₹3.05, up 19% year-over-year and 21% sequentially.

• Consolidated revenue from operations for Q1 FY25 was ₹1,545.24 million, up from ₹1,472.76 million in Q1 FY24; consolidated net profit was ₹349.76 million, up from ₹293.79 million in Q1 FY24.

• Net working capital days stood at 135 in FY24; net worth increased to ₹13,241 million.

• R&D spending was INR 76 million, about 3%-4% of revenue.

Outlook and guidance

• Management maintains a 12%-14% revenue growth outlook for FY25, with most growth expected in H2.

• Margins are expected to remain in the 33%-34% range, with potential for improvement as international sales grow.

• Focus areas include expanding animal nutrition, probiotics, bio-catalysis, and baking solutions, with new product launches and global distribution.

• Continued investment in R&D, inorganic expansion, and broadening geographical presence are key growth drivers.