Rolex Rings (ROLEXRINGS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue from operations was INR 2,598.82 million, down from INR 3,002.72 million in Q2 and INR 2,733.14 million in Q3 last year.

• EBITDA margin for Q3 was 20.9%, compared to 24.4% in Q2 and 20.5% in Q3 last year.

• PAT for Q3 FY25 was INR 201.87 million, a 45% decline year-over-year and 59% sequentially, impacted by an extraordinary provision for right of recompense (ROR) related to past debt restructuring.

• Segment mix shifted, with auto components now 55% and bearing rings 45% of revenue for the nine months.

• Unaudited financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on February 14, 2025.

Financial highlights

• Q3 FY25 PBT was INR 45 crores, down from INR 65 crores in Q2 and INR 50 crores in Q3 last year.

• Nine-month revenue was INR 8,894.96 million, down from INR 9,161.69 million year-over-year.

• Nine-month EBITDA was INR 2,070 million (23.3% margin), compared to INR 2,770 million (22.4%) last year.

• Nine-month PAT was INR 1,194 million, down from INR 1,560 million last year.

• Net operating cash inflow as of December 2024 was INR 150-160 crores, and the company is net debt-free with a cash surplus.

Outlook and guidance

• Management expects 15%-20% revenue growth and margin recovery to 22%-23% in FY26, driven by new orders and program ramp-ups.

• New business wins over the last two quarters are expected to contribute approximately INR 1,750 million in annual revenue from FY26 onwards.

• Additional ramp-up to INR 2,500 million in FY27 is anticipated.

• Management continues discussions with consortium banks regarding a significant demand notice, with ongoing negotiations and legal support.

• Positive outlook for FY27 with anticipated 15%-18% growth.