Styrenix Performance Materials (506222) Q1 24/25 earnings summary

Executive summary

• Achieved robust demand and significant growth in Q1 FY25, with sales volume up 8.6% sequentially and 21% year-over-year; revenue rose 16.7% sequentially and 28.5% year-over-year.

• Market leader in ABS and SAN, expanding in polystyrene and other polymer segments with a strong focus on specialties and OEM business.

• Unaudited financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by auditors with an unmodified conclusion.

• Management emphasizes cost optimization, product mix improvement, and deeper penetration in automotive and household sectors.

• Ongoing capacity expansion to capture 8–10% polymer market growth, supported by robust R&D and a zero-debt balance sheet.

Financial highlights

• Q1 FY25 total income rose to ₹701.2 Cr, up 16.7% sequentially and 28.5% year-over-year.

• Profit after tax for Q1 FY25 was ₹61.2 Cr, a 24% sequential increase and 88.6% year-over-year growth.

• Sales volume in Q1 FY25 was 48,055 MT, up from 39,933 MT in Q4 FY24 and 44,094 MT in Q1 FY24.

• EPS for Q1 FY25 stood at ₹34.8, up 24% sequentially and 88.6% year-over-year.

• PBDIT margin reached 13.1%, up 0.7% sequentially and 3.7% year-over-year.

Outlook and guidance

• Volume guidance for FY25 remains at 15%-20% growth over the previous year, with further increases expected in Q2 and Q3 as de-bottlenecking progresses.

• Polymer demand expected to grow over 10% YoY, with positive trends in household and automotive sectors.

• CapEx for FY25 estimated at ₹60–70 crores, with further clarity expected after engineering studies.

• Long-term expansion targets ABS capacity to 210,000 tons and polystyrene to 150,000 tons, with a total CapEx of about ₹650 crores.

• Q2 FY25 outlook anticipates average industry growth, with auto OEMs confident of sales recovery and household industry maintaining positive momentum.