Sumitomo Chemical India (SUMICHEM) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 FY25 rose 9% year-over-year to INR 988 crore, and H1 FY25 revenue increased 12% to INR 1,827 crore, driven by volume growth, new product launches, and normalization of export markets.

• PAT for Q2 FY25 increased 34% to INR 193 crore; H1 PAT up 56% to INR 319 crore, supported by improved margins and cost management.

• EBITDA for Q2 FY25 grew 31% year-over-year to INR 245 crore, with margin at 24.8%; H1 EBITDA margin rose to 22.2% from 16.5% YoY.

• Focused on profitability, strategic pricing, and disciplined financial management amid challenging weather and market conditions.

• Launched successful farmer engagement campaigns and new products, contributing to robust demand generation.

Financial highlights

• Q2 FY25 revenue: INR 988 crore (+9% YoY, +18% QoQ); H1 FY25 revenue: INR 1,827 crore (+12% YoY).

• Q2 gross margin: 42.6% (+421 bps YoY, +365 bps QoQ); Q2 EBITDA: INR 245 crore (+31% YoY, +52% QoQ); EBITDA margin: 24.8% (+402 bps YoY).

• Q2 PAT: INR 193 crore (+34% YoY, +52% QoQ); PAT margin: 19.5% (+360 bps YoY).

• H1 EBITDA: INR 402-406 crore (+51% YoY); H1 EBITDA margin: 22.2% (vs. 16.5% YoY).

• H1 PAT: INR 319 crore (+56% YoY); H1 net profit margin: 17.5% (vs. 12.6% YoY).

Outlook and guidance

• Management expects robust demand in H2, supported by high water reservoir levels and favorable soil moisture.

• Full-year domestic value growth guidance revised to 9-10%, with volume growth expected to remain strong.

• Margins expected to remain in the 18-20% EBITDA range for FY25, with potential for upside if current trends persist.

• Ongoing investments in R&D, capacity expansion, and digital marketing to drive future growth.

• No further significant price declines anticipated in H2; price impact already absorbed in H1.