Maharashtra Seamless (500265) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue increased sequentially to INR 1,291 crore, with PAT at INR 224 crore and EBITDA at INR 231 crore, supported by improved dispatches and product mix.

• Treasury income was significant, with INR 2,387 crore in treasury as of September 2024 and a net cash position.

• Order book stands robust at INR 1,700 crore as of October 2024, driven by domestic demand and margin protection.

• No ICDs or corporate guarantees to unrelated entities remain outstanding, resolving prior concerns.

• Board approved unaudited financial results for Q2 FY25, with auditors reporting no material misstatements.

Financial highlights

• Revenue from operations in Q2 FY25 was INR 1,291 crore; other income contributed INR 91 crore.

• EBITDA margin in Q2 FY25 was 17%, up from 12% in Q1 FY25; PAT was INR 224 crore.

• EPS for Q2 FY25 was INR 16.42–17.

• Dividend distributed in Q2 was four times that of FY22, with a rising payout trend.

• Standalone and consolidated revenue and profit declined year-over-year, reflecting softer demand or pricing.

Outlook and guidance

• EBITDA per ton guidance maintained at INR 15,000 for Q3, with Q2 H1 average at INR 14,159 per ton.

• Q3 dispatches expected at 100,000–110,000 tons, with margins expected to remain above 20%.

• FY25 volume expected to be flat at 400,000–410,000 tons; FY26 to see a slight increase post-Telangana finishing line commissioning.

• CapEx of INR 852 crore planned through FY26, fully funded by internal accruals and no new debt.

• Continued focus on value-added products and renewable energy segments.