Company Update : Atul Ltd By Motilal Oswal Financial Services Ltd
Beat on EBITDA; lower interest and higher OI drive strong beat on earnings
* 4QFY25 revenue stood at INR14.5b (+20% YoY). Life Science chemicals revenue came in at INR4.4b (+18% YoY). Performance chemicals revenue was INR10.5b (+21% YoY).
* Gross margin was 49.7% (-10bp YoY) and EBITDA margin was 15.4% (+320bp YoY).
* EBIT margin expanded YoY for both Life Science Chemicals and Performance Chemicals segments. Life Science Chemicals margin stood at 21.8% (+410bp YoY) and EBIT at INR966m. Performance Chemicals margin was at 8.1% (+660bp YoY) and EBIT at IN855m.
* EBITDA came in at INR2.2b (est. INR1.8b, +51% YoY). Adj. EBITDA was INR2.5b (+68% YoY) as other expenses included ~INR246m related to application fees, cess, premium, conversion charges, customary penal charges, non-agricultural assessment charges, differential stamp duty, etc., for converting a part of agricultural land to industrial use.
* PAT stood at INR1.3b (est. INR835m, +121% YoY), resulting in EPS of INR44.2. Contribution from the subsidiaries/JVs was positive (profit at INR44m in 4QFY25 vs. PAT of INR244m in 3QFY25 and net loss of INR161m in 4QFY24).
* For FY25, revenue was at INR55.8b (+18% YoY), EBITDA was at INR9.1b (+43% YoY), and PAT at INR5b (+54% YoY). EBITDAM for FY25 stood at 16.4% (+290bp YoY).
* The board has recommended a final dividend of INR25/share for FY25.
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