Ion Exchange (India) Ltd (BOM:500214) Q4 2025 Earnings Call Highlights: Navigating Growth ...
Release Date: May 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Ion Exchange (India) Ltd (BOM:500214) reported a 17% year-on-year increase in operating income for the financial year ending 2025.
The chemical division saw a revenue increase of 15.5% year-on-year, with a 17% growth in profit.
The company is expecting a new greenfield manufacturing facility at Roha to go on stream in the second quarter of the financial year 2026, which is expected to boost production capacity.
The consumer product division recorded a 14% year-on-year revenue increase for the financial year ending 2025.
The company is actively pursuing export opportunities in North America and Europe, which could enhance its international market presence.
Net profit for the fourth quarter declined by 13% year-on-year, with a corresponding decline in profit margins.
The engineering division experienced a 23% year-on-year decline in profit for the quarter, despite a 5% increase in revenue.
Order inflow was muted for the quarter, with delays in finalizing large value opportunities.
The company is facing challenges with the execution of the UP project, leading to slower-than-expected progress and impacting overall performance.
Chemical margins were lower in the fourth quarter due to seasonality and increased input costs, which the company is working to pass on to customers.
Warning! GuruFocus has detected 3 Warning Sign with BOM:500214.
Q: The order inflow seemed muted for the quarter. How do you see growth shaping up ahead? A: We have been slow on order intake due to aggressive market pricing and some key jobs spilling over to the next financial year. We remain selective in picking orders that enhance our engineering business margins. Unidentified_4
Q: Chemical margins were low for the quarter. Can you explain the reasons? A: The lower margins were due to seasonality and increased input costs. We have taken action to pass on these cost increases to customers. Unidentified_3
Q: What is the revenue and margin outlook for FY26? A: We expect a similar trend going forward and will provide a better outlook in the second quarter. The SAP implementation is ongoing, which may cause some initial disruptions. Unidentified_4
Q: Can you provide an update on the ongoing court case? A: We hope for a resolution soon, but given the complexities of the Indian judiciary, it may continue for some time. Unidentified_6
Q: What is the demand outlook for the engineering segment, and how are the UP and legacy projects progressing? A: We are selective with orders to maintain profitability. The UP and other legacy projects are ongoing, with some delays due to funding issues. We expect these projects to continue into the next financial year. Unidentified_4
Q: How is the consumer products division performing, and when do you expect it to be profitable? A: We have invested in infrastructure and distribution, and while payback was slower than expected, we anticipate better margins from the third quarter onwards. Unidentified_3
Q: Are you receiving inquiries from booming industries like semiconductors and data centers? A: Yes, we are actively pursuing opportunities in these segments, although competition is aggressive. We are well-positioned to win in these areas. Unidentified_4
Q: What is the status of the Roha plant, and how will it impact chemical segment profitability? A: The Roha plant is close to commissioning, which will enhance our capacity and support export growth. We expect to see revenue traction from the second and third quarters. Unidentified_4
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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