EPL (500135) Q1 24/25 earnings summary

Executive summary

• Achieved double-digit revenue growth of 10.7% year-over-year, with EBITDA up 20.8% and adjusted PAT up 35.4%, supported by all regions and strong oral care performance.

• EBITDA margin expanded to 19.1%, a 160 bps improvement year-over-year, and ROCE increased to 15.9%.

• Net Debt/EBITDA ratio improved to 0.67x from 0.71x YoY.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved and reviewed by the Board and auditors, with no material misstatements identified.

• Growth driven by robust demand across all major markets and successful execution of strategic initiatives.

Financial highlights

• Consolidated revenue from operations reached ₹10,074 million, up 10.7% year-over-year; EBITDA stood at ₹1,921 million, up 20.8% YoY; adjusted PAT up 35.4%.

• EBITDA margin reached 19.1%, up 160 bps year-over-year.

• Adjusted EPS increased from 1.49 to 2.02 YoY; net debt reduced to ₹5,039 million from ₹6,026 million as of Mar 24.

• Standalone revenue from operations was ₹3,297 million, up from ₹3,035 million year-over-year; standalone net profit after tax was ₹386 million, compared to ₹274 million last year.

• Capex for Q1FY25 was ₹442 million.

Outlook and guidance

• Targeting sustained double-digit revenue growth and EBITDA margins above 20%, with margin improvement plans and continued focus on efficiency.

• Aggressive expansion in 'Personal Care & Beyond' and scaling up Brazil operations.

• Acquired a 49% stake in Clean Max Aria Private Limited post-quarter to develop captive wind and solar power for plants in Maharashtra and Gujarat.

• Gross margins considered sustainable, with minor quarter-to-quarter fluctuations possible.

• Americas growth expected to remain strong, though may moderate from current high levels.