Advanced Enzyme Technologies (ADVENZYMES) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue was ₹1,461 million, up 7% year-over-year and 5% sequentially, but EBITDA declined 17% year-over-year and sequentially; PAT for the quarter was ₹333.93 million.

• H1 FY25 revenue was ₹3,006 million, nearly flat year-over-year, with EBITDA down 2% and PAT up 6% to ₹684 million.

• Revenue was impacted by a higher-than-usual revenue reversal of ₹83 million due to accounting standards, deferring sales to Q3.

• U.S. business showed strong growth, with sales up 24% year-to-date, while export sales excluding the U.S. declined due to sales reversal and international market slowdown.

• The Board declared and paid interim and final dividends totaling ₹5.10 per share during the period.

Financial highlights

• Q2 FY25 revenue: ₹1,461 million (7% YoY growth, 5% sequential growth); EBITDA: ₹425 million (down 17% YoY and sequentially), margin at 29%; PAT: ₹334 million, margin at 23%.

• H1 FY25 revenue: ₹3,006 million (down ₹45 million YoY); EBITDA: ₹936 million (down ₹17 million YoY), margin stable at 31%; PAT: ₹684 million (up ₹38 million YoY).

• EPS for Q2 FY25 was ₹2.94, and for H1 FY25, ₹5.99.

• Cash generated from operating activities for H1 FY25 was ₹429.56 million.

• Net worth as of September 30, 2024, stood at ₹13,416.54 million.

Outlook and guidance

• Full-year revenue growth revised to single digits, down from earlier double-digit guidance; H2 expected to be stronger as deferred Q2 sales contribute to Q3.

• EBITDA margin for FY25 expected in the 30%-33% range, with improvement anticipated as revenue increases.

• Focus areas include expanding animal nutrition, probiotics, and bio-catalysis, with new product launches and geographic expansion planned.

• Continued investment in R&D, strategic partnerships, and inorganic expansion are key growth drivers.