Sansera Engineering (SANSERA) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly consolidated revenue of INR 7,634 million in Q2 FY25, up 10% YoY, driven by strong order execution, diversification, and robust order book exceeding INR 20 billion.

• Successfully completed a QIP of INR 12,000 million in October 2024 to fund growth, capacity expansion, and partial debt reduction.

• Strengthened leadership team and expanded operations, including new manufacturing facilities and land acquisition.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY25 were approved, with unmodified auditor review reports.

• Business activities remain focused on precision-engineered components, reported under a single segment.

Financial highlights

• Q2 FY25 consolidated revenue was INR 7,633.67 million, up from INR 6,928.83 million YoY; EBITDA at INR 1,331 million (up 13% YoY), with margin at 17.4%.

• PAT for Q2 FY25 was INR 516.08 million, with PAT margin at 6.8%; H1 FY25 consolidated revenue at INR 15,073 million, PAT at INR 1,017.51 million.

• Gross margin expanded to 41.3% in Q2 FY25, up 1.3 percentage points YoY.

• Net debt as of September 2024 was INR 8,797 million; CapEx in H1 FY25 was INR 2,937 million.

• Net cash from operations in H1 FY25 was INR 1,958.92 million (consolidated).

Outlook and guidance

• Robust and diversified order book of INR 20 billion, with 51-60% from international and emerging segments, expected to mature over the next 3 years.

• Continued strong growth expected in two-wheeler, tech agnostic/xEV, and aerospace/defense segments, with margin expansion as new programs ramp up.

• Non-auto segment expected to recover and grow 35-40% from Q1 FY26 as off-road and agriculture rebound.

• Ongoing investment in associate MMRFIC Technology Pvt Ltd to leverage radar technology for automotive and defense.