NOCIL (NOCIL) Q2 24/25 earnings summary

Executive summary

• Revenue from operations for Q2 FY25 was INR 363 crores, up 3% year-over-year but down sequentially, with volumes growing 11% year-over-year and 9% for H1 FY25 compared to H1 FY24.

• Net profit for Q2 FY25 rose 55% year-over-year to INR 42 crores, with net profit margin improving to 11.6%.

• Export volumes grew at a double-digit rate year-over-year, supported by China+1 sourcing and strategic customer engagement.

• Domestic demand remains robust, with stable tire replacement volumes and export recovery despite aggressive international competition.

• Operational efficiencies and eco-friendly practices are being prioritized, including energy-efficient production and waste reduction.

Financial highlights

• Q2 FY25 operating EBITDA was INR 38 crores (down 17% year-over-year and 8% sequentially); EBITDA margin at 10.4% for Q2 FY25.

• H1 FY25 operating EBITDA: INR 79 crores (down 22% year-over-year); margin at 10.7%.

• Q2 FY25 operating PBT: INR 32 crores; H1 FY25: INR 69 crores.

• Q2 FY25 PAT: INR 42 crores, aided by a tax credit of INR 14.89 crores due to Budget 2024 changes.

• Net cash from operating activities for H1 FY25 was INR 58 crores, down from INR 99 crores in H1 FY24.

Outlook and guidance

• Volume growth expected to improve in H2 FY25, with sequential quarter-over-quarter growth targeted.

• Company aims to double market share by leveraging product portfolio and expanding in Asia, Europe, and the US.

• Logistical challenges are expected to ease, supporting higher sales and operating leverage.

• China+1 strategy expected to benefit from global sourcing shifts and available capacities.

• No specific numeric guidance provided, but management remains optimistic on growth opportunities.