Dynamatic Technologies (505242) Q2 24/25 earnings summary

Executive summary

• Revenue for H1 FY2025 was Rs. 7,077.0 mn, down 0.8% year-over-year, while Q2 FY2025 revenue rose 3.0% to Rs. 3,614.2 mn compared to Q2 FY2024.

• Standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2024 were approved, with statutory auditors issuing an unmodified review conclusion.

• Interim dividend of Rs. 2 per equity share declared for FY 2024-25, with record date set as 22 November 2024.

• Aerospace and Hydraulics segments posted strong growth, offset by a significant decline in Metallurgy.

• PAT for H1 FY2025 (excluding exceptional items) increased 125.4% year-over-year to Rs. 234.2 mn; Q2 PAT rose 229.6% to Rs. 120.3 mn.

Financial highlights

• Consolidated revenue from operations for Q2 FY25 was Rs. 36,142 lakhs, up from Rs. 34,628 lakhs in Q1 FY25 and Rs. 35,090 lakhs in Q2 FY24.

• H1 FY2025 EBITDA was Rs. 810.9 mn, up 6.9% year-over-year, with margin improving by 82 bps to 11.5%.

• Q2 FY2025 EBITDA was Rs. 410.4 mn, up 5.6% year-over-year, margin at 11.4%.

• Exceptional gain of Rs. 6,237 lakhs from sale of windfarm land recognized in Q1 FY25.

• Gross margin for H1 FY2025 was 53.9%, up from 52.7% in H1 FY2024.

Outlook and guidance

• Aerospace: Robust order book with potential to double business in 30 months; supply chain challenges expected to ease.

• Hydraulics: Continued growth expected, supported by favorable agricultural conditions and product innovation.

• Metallurgy: Performance to depend on raw material availability, commodity prices, and financing costs; focus on high-margin products and aerospace/defense transition.

• Interim dividend declared for FY 2024-25, reflecting confidence in ongoing performance.