Carborundum Universal (CARBORUNIV) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 sales were INR 1,184 crore, flat year-over-year; profit after tax was also flat at INR 113 crore, with a 16.2% decline sequentially from Q4 FY24.

• Abrasives segment grew 6.3% year-over-year, while ceramics and electrominerals declined by 6% and 9%, respectively.

• Standalone sales grew 1% to INR 664 crore; standalone abrasives rose 7.3%, while ceramics and electrominerals declined.

• Margins improved in abrasives but declined in ceramics and electrominerals due to product mix and price pressures.

• Consolidated PAT after non-controlling interest was INR 113 crore, flat year-over-year and down 16% sequentially; standalone PAT was INR 93 crore, flat year-over-year and down 1% sequentially.

Financial highlights

• Consolidated PBIT for Q1 FY25 was INR 149 crore, down 3.5% year-over-year, with a margin of 12.6%.

• Consolidated revenue from operations: INR 1,197.5 crore for Q1 FY25; standalone revenue: INR 673.5 crore.

• Consolidated net profit after tax and non-controlling interest: INR 112.96 crore; standalone net profit: INR 93.28 crore.

• Earnings per share (consolidated): Basic INR 5.94; Diluted INR 5.92.

• CapEx investment in Q1 was INR 63 crore; full-year CapEx planned at INR 350 crore.

Outlook and guidance

• Full-year consolidated sales growth guidance of 9%-11% (INR 5,100-5,200 crore) reaffirmed.

• Segment growth expectations: abrasives 11%-12%, ceramics 12%-14%, electrominerals 5%-6%.

• PBIT margin expected to improve by 20-30 basis points; abrasives margin to improve by 100 basis points.

• Second half of FY25 expected to be stronger, especially for ceramics.

• Management continues to monitor the impact of geopolitical uncertainties, especially regarding the Russian subsidiary VAW.