Latest news with #engineeringdivision
Yahoo
02-06-2025
- Business
- Yahoo
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.
Yahoo
26-05-2025
- Business
- Yahoo
Expleo Solutions Ltd (BOM:533121) Q4 2025 Earnings Call Highlights: Revenue Growth and ...
Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Expleo Solutions Ltd (BOM:533121) reported a 7.1% year-on-year growth in revenue, reaching 1,041 crore INR. The company improved its EBITDA margin by 80 basis points to 16.2%, indicating better operational efficiency. Expleo Solutions Ltd has focused on growing existing customer accounts, with 75% of top accounts showing significant improvement. The company has expanded its presence in the Middle East, establishing a subsidiary in Saudi Arabia, and continues to grow in Dubai. Expleo Solutions Ltd has invested in AI and data capabilities, launching the platform, which has started generating revenue from four different accounts. The company experienced a 0.7% drop in operating revenue quarter-on-quarter due to project closures in the auto industry. The European market remains challenging, with a slowdown in the auto and aerospace sectors impacting revenue. Despite efforts, the US market revenue remains flat, indicating challenges in gaining traction. The engineering division has seen a decline in revenue over the past three years, with limited growth prospects. Expleo Solutions Ltd faces pressure to manage operational expenses and maintain profitability amidst market uncertainties. Warning! GuruFocus has detected 3 Warning Signs with BOM:533121. Q: Can you provide an update on the engineering division's performance and outlook, given the decline in revenues over the past three years? A: The engineering business is a small fraction of our total revenue, primarily affected by the slowdown in the auto and aero industries in Europe. However, we are seeing traction in defense projects, which are being moved to India for cost benefits. We are also expanding our transport services in Asia, which should help stabilize the engineering services soon. Unidentified_3 (CEO) Q: What is the strategy for client additions, especially with respect to GCCs in India? A: We are focusing on quality over quantity by compartmentalizing clients into four quadrants based on revenue and margin. We are targeting GCCs where we have existing relationships or expertise, offering services like quality assurance in a build-operate-transfer model. This approach allows us to focus on high-value clients. Unidentified_3 (CEO) Q: What is the expected revenue growth for the next couple of years, considering the industry outlook? A: While it's difficult to provide exact numbers due to market volatility, we expect growth in BFSI, retail, and defense sectors. Insurance and auto may remain flat or decline, but overall, we anticipate a better performance than the previous year. Unidentified_3 (CEO) Q: How is Expleo Solutions leveraging AI, and what impact will it have on headcount? A: We are using AI to improve efficiency in fixed-price projects and operational areas like recruitment and sales. While AI will eventually reduce headcount, the current decrease is due to strict bench management. Our focus is on becoming AI-ready internally before offering solutions to clients. Unidentified_3 (CEO) Q: What is the outlook for the European market in FY26, given the current challenges? A: The auto industry may not recover soon, but aero could bounce back once supply chain issues are resolved. Cost pressures in Europe are leading to increased offshoring, which benefits us. BFSI and life sciences are promising due to AI adoption, and we expect positive growth in these sectors. Unidentified_3 (CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
