Sumitomo Chemical India (SUMICHEM) Q3 24/25 earnings summary

Executive summary

• Achieved 18% YoY revenue growth in Q3FY25, driven by strong domestic and export volumes despite adverse weather and weak farmer sentiment.

• Export revenues surged 38% YoY, with Latin America and Europe as key growth markets.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were approved by the Board on 27 January 2025.

• The business is seasonal, with performance influenced by monsoon and climatic conditions.

• Launched the second season of the 'Every Day Farmer Day' campaign, enhancing farmer engagement and brand trust.

Financial highlights

• Q3FY25 consolidated revenue: ₹6,419.19 million (+18% YoY); 9MFY25 consolidated revenue: ₹24,691.03 million (+14% YoY).

• Q3FY25 consolidated PAT: ₹874.30 million (+60% YoY); 9MFY25 consolidated PAT: ₹4,066.58 million (+56% YoY).

• Q3FY25 EBITDA: ₹106.1 Cr (+61% YoY); 9MFY25 EBITDA: ₹512.5 Cr (+53% YoY).

• Q3FY25 gross margin: 42.1% (up 239 bps YoY); EBITDA margin: 16.5% (up 439 bps YoY); PAT margin: 13.6% (up 352 bps YoY).

• Basic and diluted EPS (standalone) for Q3FY25 was ₹1.69, up from ₹1.10 in Q3 FY24; for nine months, EPS was ₹8.08, up from ₹5.22 year-over-year.

Outlook and guidance

• Targeting steady growth in FY25-26, contingent on a normal monsoon, with a focus on innovative product launches and operational efficiency.

• Monitoring Rabi season progress, with higher sowing acreage expected to impact Q4FY25 results.

• The company’s performance is expected to remain seasonal, with future results dependent on monsoon and climatic conditions.