Camlin Fine Sciences (CAMLINFINE) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was INR 3,958.5 million, down 1.5% sequentially and 5.7% year-over-year, with gross margins improving to 44.9% from 34.9% last quarter.

• Adjusted EBITDA rose to INR 284.1 million, with margins at 7.2%, but profitability remained under pressure due to pricing headwinds and FX volatility.

• PAT was negative at INR -346.5 million, impacted by foreign exchange losses in South American subsidiaries.

• Blends business grew 13.4% quarter-on-quarter, maintaining segment dominance.

• Acquisition of Vitafor Invest NV, Belgium, completed in June 2024, expanding presence in European and African animal feed markets.

Financial highlights

• Q1 FY25 revenue: INR 3,958.5 million (down 1.5% QoQ, down 5.7% YoY).

• Adjusted EBITDA: INR 284.1 million (up from INR 44.7 million in Q4 FY24), margin at 7.2%.

• PAT: INR -346.5 million (vs. INR -817.9 million in Q4 FY24 and INR 120.2 million in Q1 FY24).

• Diluted EPS: INR -2.01 (vs. INR 0.94 in Q1 FY24 and INR -4.58 in Q4 FY24).

• Gross margin improved to 44.9% from 34.9% in the previous quarter.

Outlook and guidance

• Expectation of continued growth in Blends business and ramp-up of Vanillin sales from Q2 FY25.

• Inorganic growth anticipated from Vitafor acquisition, leveraging its network in Europe and Africa.

• Focus on high-margin blends, new product launches in performance chemicals, and expansion in aroma ingredients.