1. Opening Hook
SAP upgrades — the new villain in every CFO’s bedtime story. Ion Exchange proudly declared “migration complete,” only to realize the system might have eaten some margins along the way. The stock didn’t crash, but the patience of investors surely did. Between a legacy project that refuses to die and a shiny new Roha plant that’s still stretching its legs, management spent most of the call explaining how “normalization” isn’t code for stagnation. The real juice, though? A German alliance and a promise that water (and profits) will flow… eventually. Keep reading — it gets frothier than a membrane reactor. 💧
2. At a Glance
- Revenue ₹7,339 Cr (↑14%)– SAP finally stopped ghosting invoices.
- EBITDA ₹685 Cr (Flat YoY)– Growth refused to RSVP.
- EBITDA Margin 9.3%– Same old, same old, but with more excuses.
- Net Profit ₹499 Cr (↓1.4%)– Legacy projects dragged margins underwater.
- Order Book ₹27,110 Cr– Enough backlog to last till the next monsoon.
- Chemical Segment Margin 29%– Someone finally added the right mix.
- Consumer Division ↑24%– Still loss-making, but “investing in growth,” a.k.a. ad spends.
3. Management’s Key Commentary
“Operations normalized post SAP migration.”(Translation: We finally figured out how to print invoices.😏)
“Engineering revenue grew 16%, but EBIT declined 5%.”(Translation: We worked harder to earn less — efficiency, redefined.)
“Legacy projects continue to impact profitability.”(Translation: We’re still paying for past optimism.)
“We’ve tied up with MANN+HUMMEL to make membranes in India.”(Translation: Germans to the rescue — when in doubt, co-brand it.)
“The Roha plant commissioning began in September.”(Translation: 10% running, 90% explaining.)
“Consumer business grew 24% with reduced losses.”(Translation: Ads worked, profits didn’t.)
“Margins will ‘normalize’ in H2.”(Translation: If all else fails, there’s always next quarter.)
4.
Numbers Decoded
| Segment | Revenue (₹ Cr) | YoY Growth | EBIT / Margin | Commentary |
|---|---|---|---|---|
| Engineering Division | 4,562 | +16% | 4.8% (↓) | Legacy project hangover & UP Jal Nigam woes |
| Chemicals Division | 2,184 | +11% | 27–29% (↑) | Resin margins shining like new membranes |
| Consumer Products | 858 | +24% | Loss ₹27 Cr (↓22%) | Ads, FM jingles, and alkaline water dreams |
| Services & O&M | – | ↑ Strongly | – | High-value contracts; infra costs biting |
| Order Book | 27,110 | – | – | ₹4,700 Cr new inflow, legacy still haunting |
Note:CFO’s mood improved 29% — just like the chemical margins.
5. Analyst Questions
Abakkus AM:“Engineering margins lowest ever — why?”Mgmt:“Legacy projects, slow UP payments.” (Translation: Blame geography and government.)
Unifi MF:“Consumer business break-even?”Mgmt:“We’re reinvesting all profits back.” (Translation: Because there aren’t any yet.)
Sundaram MF:“Membrane JV with MANN+HUMMEL?”Mgmt:“No JV, just a ‘strategic hug.’” (Translation: Fancy licensing with German accent.)
Unique PMS:“Legacy done by year-end?”Mgmt:“Hopefully.” (Translation: We said that last quarter too.)
6. Guidance & Outlook
- Engineering:H2 margins expected at 6–7%; legacy drag to
