Carborundum Universal (CARBORUNIV) Q2 24/25 earnings summary

Executive summary

• Achieved record consolidated sales of INR 1,209 crores in Q2 FY25, up 7.6% year-over-year, with all segments contributing to growth; PAT for Q2 FY25 was INR 116 crores, up 13.7% year-over-year.

• Standalone Q2 FY25 sales were INR 705 crores, up 9.6% year-over-year, with PAT at INR 86 crores, a 4.4% increase.

• H1 FY25 consolidated sales reached INR 2,393 crores, a 3.4% increase over the same period last year; H1 FY25 PAT grew 6.4% to INR 229 crores.

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

Financial highlights

• Q2 FY25 consolidated PBIT was INR 154 crores, up 9.2% year-over-year; PBIT margin improved to 12.8%.

• Consolidated EBITDA for Q2 FY25 was INR 202.6 crores; consolidated EPS (basic) was INR 6.09.

• Capital expenditure at consolidated level for H1 FY25 was INR 124 crores; full-year spend expected at INR 300 crores.

• Consolidated debt reduced to INR 103 crores with a debt-to-equity ratio of 0.03.

• Return on capital employed (ROCE) for H1 FY25 was 17% consolidated and 19.3% standalone.

Outlook and guidance

• Full-year consolidated sales expected at INR 5,100–5,200 crores, with PAT around INR 500 crores.

• CapEx guidance revised to INR 300 crores for FY25 due to timing differences; company expects to remain debt-free.

• Consolidated PBIT margin guidance lowered by 100 bps due to underperformance in Awuko and Foskor Zirconia.

• Management continues to monitor geopolitical risks, especially regarding the Russian subsidiary, but no adjustments are currently required.

• Growth expectations: abrasives 10%, ceramics 12–14%, electrominerals 5–6%.