Styrenix Performance Materials (506222) Q2 24/25 earnings summary

Executive summary

• Robust demand in H1 FY25 drove significant growth, with successful de-bottlenecking at Dahej increasing PS capacity from 66 KT to 100 KT and further ABS expansion planned for H2 FY25.

• Sustainability initiatives included converting Dahej's fuel source to renewable, with similar changes planned for other plants.

• Strengthened position in specialty polymers, focusing on automotive and household sectors, with new product launches and capacity expansion.

• Standalone and consolidated unaudited financial results for Q2 and H1 FY2024-25 were approved on October 28, 2024, with auditor review reports expressing unmodified conclusions.

• A wholly owned subsidiary, Styrenix Performance Materials FZE, was incorporated in Dubai in September 2024, with no transactions during the reported period.

Financial highlights

• Q2 FY25 revenue was ₹653.22 Cr, up 10.3% year-over-year but down 6% sequentially; H1 FY25 revenue rose 19% year-over-year to ₹1,352 Cr.

• Q2 FY25 PAT was ₹70.1 Cr, up 24.3% year-over-year and 1.9% sequentially; H1 FY25 PAT surged 47.8% year-over-year to ₹131.3 Cr.

• Q2 FY25 EPS at ₹39.9, up 24.3% year-over-year; H1 FY25 EPS at ₹74.7, up 47.8% year-over-year.

• Q2 FY25 sales volume was 41,806 MT, down 13.5% sequentially and 7.3% year-over-year due to Dahej shutdown for de-bottlenecking.

• H1 FY25 sales volume rose 6.5% year-over-year to 90.1 KT.

Outlook and guidance

• Q3 is expected to be average based on historical trends, with some softness in Oct-Dec 2024 due to raw material costs and global shipping delays.

• Volume growth guidance remains in line with capacity expansion, targeting 200,000 tons production for FY25.

• Focus on margin maximization, product mix improvement, and further penetration in key industries.

• Management emphasizes annualized performance over quarterly fluctuations for a clearer trend.