Q3 2025 Sudarshan Chemical Industries Ltd Earnings Call Transcript
Key Points
- Sudarshan Chemical Industries Ltd (BOM:506655) reported an 18% year-on-year increase in total income from operations for Q3 FY25, reaching INR666 crore.
- The company's EBITDA for the quarter improved to INR79 crore, up from INR62 crore in Q3 FY24, with an EBITDA margin increase from 10.9% to 11.9%.
- Export sales grew significantly by 29% year-on-year, contributing to 52% of total sales in Q3 FY25, up from 47% in the previous year.
- The Pigment business showed a consistent growth trend, marking the eighth consecutive quarter of year-on-year sales growth.
- The company's net debt reduced to INR362 crore in Q3 FY25 from INR434 crore in the previous year, improving the leverage ratio to 0.3 times.
- Despite the growth in segmental EBIT, the consolidated EBITDA and EBIT declined sequentially by 15% and 27%, respectively.
- The domestic sales growth was muted at 3% due to weaker demand in the Coatings segment.
- Gross margins in the Pigment business remained flat at 45.2%, slightly down from 45.5% in the previous year.
- The company incurred acquisition and integration-related costs of INR41.9 crore, impacting profitability.
- The Engineering business, RIECO, only reached breakeven in Q3 FY25, indicating ongoing challenges in achieving sustainable profitability.
Ladies and gentlemen, good day, and welcome to Sudarshan Chemical Industries Limited Q3 and 9 Months FY25 earnings conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sanjesh Jain from ICICI Securities. Thank you, and over to you, sir.
Thanks, Manav. Good afternoon, everyone. Thank you for joining on Sudarshan Chemical Industries Limited Q3 and 9 Months FY25 Results Conference Call. We have Sudarshan Chemical management on call represented by Mr. Rajesh Rathi, Managing Director; Mr. Nilkanth Natu, Chief Financial Officer; Mr. Amey Athalye, General Manager, Finance.
I would like to invite Mr. Nilkanth Natu to initiate with the opening remarks, post which we will have a Q&A session. Over to you, Nilkanth ji.
Thank you, ICICI Securities and Sanjesh Jain for hosting our earnings
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