Borosil (BOROLTD) Q2 24/25 earnings summary

Executive summary

• H1 FY25 revenue from operations reached ₹490.7 crore, up 19.4% year-over-year, with EBITDA up 44.1% to ₹86.9 crore and PAT at ₹27.6 crore, despite higher depreciation and finance costs from new capacity.

• Q2 FY25 revenue grew 16.6% year-over-year to ₹273.9 crore, with EBITDA up 27.7% to ₹50.2 crore and PAT at ₹18.3 crore, impacted by higher taxation due to regulatory changes.

• The Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2024.

• The company raised ₹150 crore via QIP, primarily used for loan repayments, improving the credit profile and resulting in a long-term rating upgrade to AA- stable by ICRA.

• Strong brand legacy, leading position in opalware, and diversified product portfolio across glassware, non-glassware, and domestic appliances.

Financial highlights

• H1 FY25 net sales were ₹490.7 crore (up 19.4% YoY); EBITDA was ₹86.9 crore (up 44.1% YoY); PAT was ₹27.6 crore (up 17.6% YoY).

• Net debt reduced to ₹88.6 crore at period end from ₹111.5 crore in H1 FY24.

• Other income included ₹8.42 crore from shared service support, with related expenses in total expenses.

• Investment income increased by ₹6.36 crore year-over-year.

• Basic and diluted EPS for Q2 FY25 stood at ₹1.53, and for the half-year at ₹2.36.

Outlook and guidance

• Management maintains a 15%-20% short- to medium-term revenue growth guidance, focusing on premiumization, new product development, and e-commerce acceleration.

• Plans to improve EBITDA margins through cost control, premium product focus, and logistics optimization.

• QIP proceeds are being used for repayment/prepayment of loans and general corporate purposes, with unutilized funds temporarily invested in mutual funds.