Rolex Rings (ROLEXRINGS) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue grew sequentially to INR 284 crore (₹2,839 mn), with EBITDA rising to INR 62 crore, but was down year-over-year due to subdued overseas demand.

• FY25 revenue was INR 1,154 crore (₹11,548 mn), with net profit after tax at INR 174 crore (₹1,740 mn), both showing operational stability and year-over-year growth in profitability.

• PAT for Q4 FY25 rebounded to INR 55 crore (₹546 mn) due to absence of extraordinary items and lower exceptional expenses.

• Auto components now contribute 55% of component revenue, overtaking bearing rings at 45%, with the segment expected to remain above 50% of revenue.

• Standalone audited results were approved, and MJP Associates was appointed as Secretarial Auditors for five years, pending shareholder approval.

Financial highlights

• FY25 EBITDA was INR 269 crore (₹2,691 mn), with a margin of 23%, slightly down from FY24.

• FY25 PAT was INR 174 crore (₹1,740 mn), up from INR 156 crore (₹1,560 mn) in FY24.

• Operating cash inflow averaged INR 200 crore over three years, with FY25 net cash from operations at ₹2,272.44 mn.

• Net debt to equity improved to (0.05), indicating a net cash position, with cash and bank balances at INR 54 crore (₹488.81 mn).

• Scrap revenue for FY25 was INR 78 crore; export incentives INR 16 crore.

Outlook and guidance

• Management expects at least 15% revenue growth in FY26, with similar or higher growth in FY27.

• EBITDA margin guidance for FY26 is 23.5%-24%, potentially exceeding 24% in FY27.

• Q1 FY26 is expected to see 2%-5% growth, with stronger performance from Q2 FY26 due to new orders.

• Full recovery in bearing rings segment expected in 6-8 quarters, with gradual improvement starting Q3 FY26.

• Management continues to negotiate a significant bank demand notice, with legal opinions supporting the company's position.