Vimta Labs (524394) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew to INR 854 million, up 26.4% YoY, driven by pharmaceutical services and supported by clinical trial and analytical services.

• Net profit from continuing operations for Q2 FY25 was INR 170 million, more than doubling YoY; total comprehensive income reached INR 152.41 million.

• Divested diagnostics services business to focus on core operations, with a 5% brand royalty fee on its revenue for at least two years.

• New life sciences facility to be commercialized from Q3, with ongoing expansion in electronics testing and addition of a new EMI/EMC chamber.

• Financials exclude Diagnostic and Pathological services, reflecting a strategic focus on core segments.

Financial highlights

• Q2 FY25 total income: INR 854 million, up 26.4% YoY; EBITDA: INR 306 million, up 57% YoY; EBITDA margin at 35.8%.

• Q2 FY25 PAT: INR 170 million, PAT margin close to 20%; basic EPS at INR 7.7, up 108.1% YoY.

• H1 FY25 revenue: INR 1,610 million, up 12% YoY; EBITDA: INR 472 million; PAT: INR 309 million; PAT margin at 19.2%.

• Cash flow from operating activities for H1 FY25 was INR 488.34 million, up from INR 268.16 million in H1 FY24.

• Total debt as of September 2024 was INR 116 million; cash and equivalents at INR 280 million.

Outlook and guidance

• Confident of achieving a run rate of INR 500 crore in FY26, adjusting for the diagnostics divestment.

• Growth expected across all business units, with pharmaceuticals remaining the dominant contributor.

• Margins in the mid-30% range are sustainable post-diagnostics divestment, with potential for further improvement as capacity utilization increases.

• Focus on operational excellence, technology adoption, and new market penetration.

• Will receive a 5% brand royalty fee on revenue from the divested diagnostics business for at least two years.