Camlin Fine Sciences (CAMLINFINE) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue rose 6.9% sequentially to INR 422 crore (Rs. 4,230 mn), with gross margin improving to 48.2% and operational EBITDA margin at 10.2%.

• Aroma sales surged to INR 45 crore (Rs. 454 mn) and blends contributed INR 222.9 crore (Rs. 2,229 mn), with strong growth in North America.

• Significant impairment provisions and asset write-downs, mainly in Europe and China, totaled over INR 151 crore (Rs. 1,510.4 mn), resulting in a consolidated net loss of INR 116.1 crore (Rs. 1,161 mn) for Q2 FY25.

• Profit before exceptional items was INR 8.73 crore, a turnaround from a loss of INR 23.48 crore in the previous quarter.

• Acquisition of Vitafor Group (Belgium) completed to strengthen presence in European and African animal feed markets.

Financial highlights

• Q2 FY25 revenue up 4.2% year-over-year and 6.9% sequentially; H1 FY25 revenue at Rs. 8,254.8 mn.

• Q2 FY25 operational EBITDA at Rs. 432.4 mn (10.2% margin), up from Rs. 284.1 mn (7.2%) in Q1 FY25.

• Exceptional items and impairments totaled INR 151 crore (Rs. 1,510.4 mn), mainly for European and China operations.

• Net debt stands at INR 650 crore, with gross debt at INR 741 crore; no immediate plans for reduction.

• Diluted EPS for Q2 FY25 at -5.93; consolidated net loss after tax and exceptional items for Q2 FY25 was INR 165.8 crore (Rs. 16,578.77 lakh).

Outlook and guidance

• Blend business expected to grow 20% annually for the next few years, with focus on expanding high-margin blends and additives for food, pet food, biodiesel, livestock, and aquaculture.

• Aroma business capacity utilization targeted to rise from 40% to 55% by FY25-end, aiming for 75% in FY26.

• Performance Chemicals projected to grow 15–20% in the next financial year, with new product launches planned.

• Management expects continued challenges in the European and Chinese markets, with ongoing review of underperforming assets and focus on alternate utilization plans.