ESAB India Reports Robust Q2 Performance: Net Profit Surges 83%, Declares Rs 25 Interim Dividend

ESAB India Limited has reported a strong financial performance for the second quarter, with significant growth in revenue and profitability. The company's board has also declared an interim dividend, rewarding shareholders amidst the positive results.

Financial Highlights

ESAB India's financial results for Q2 showcase impressive growth:

Metric	Q2	Previous Q2	YoY Change
Revenue	3,815.50	3,386.50	12.67%
Net Profit	792.00	431.60	83.50%
EBITDA	722.20	614.70	17.49%
EBITDA Margin	18.93%	18.15%	78 bps

The company's revenue grew to Rs 3,815.50 crore, up from Rs 3,386.50 crore in the same period last year, marking a 12.67% increase. Net profit saw a substantial surge of 83.50%, reaching Rs 792.00 crore compared to Rs 431.60 crore in the previous year's corresponding quarter.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also showed strong growth, increasing by 17.49% to Rs 722.20 crore from Rs 614.70 crore in the corresponding quarter of the previous year. The EBITDA margin improved by 78 basis points, rising from 18.15% to 18.93%.

Exceptional Gain

It's worth noting that the results include an exceptional gain of Rs 309 crore. This gain is related to the sale of land at Khardah, West Bengal. The company has received the entire proceeds from this sale and has fulfilled its contractual obligations, formally ceding control and possession to the developer.

Dividend Declaration

In light of the strong performance, ESAB India's Board of Directors has approved an interim dividend of Rs 25 per equity share (face value Rs 10 each). This translates to a dividend payout of 250% of the face value.

Key details of the dividend:

Record Date: November 14
Payment Date: On or before December 8
Total Dividend Outflow: Rs 38,48,25,500 (subject to applicable tax deductions)

Half-Yearly Performance

For the first half (H1), ESAB India continued its strong performance:

Metric	H1	Previous H1	YoY Change
Revenue	7,367.90	6,707.30	9.85%
Net Profit	1,201.40	876.10	37.13%

The company's revenue for H1 increased by 9.85% to Rs 7,367.90 crore, while net profit saw a significant jump of 37.13% to Rs 1,201.40 crore compared to the same period in the previous fiscal year.

Conclusion

ESAB India's Q2 results demonstrate the company's ability to drive growth and profitability in the challenging economic environment. The substantial increase in net profit, coupled with improved operational efficiency as reflected in the EBITDA margin, indicates strong fundamentals and effective management strategies.

The declaration of an interim dividend further underscores the company's commitment to delivering value to its shareholders. As ESAB India continues to navigate the evolving market landscape, investors and market watchers will be keen to observe how the company sustains this momentum in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.94%	+7.47%	+14.53%	+11.39%	-5.57%	+314.55%

ESAB India , a leading player in the welding and cutting industry, has released its fourth quarter financial results, showcasing robust growth across key metrics. The company has also announced a significant dividend recommendation for its shareholders.

Revenue Growth

ESAB India reported a notable increase in its Q4 revenue, which rose to ₹3,680.00 million from ₹3,400.00 million in the same quarter of the previous year. This represents a year-over-year growth of approximately 8.2%, indicating strong market demand for the company's products and services.

Profitability Metrics

The company's profitability showed improvement in absolute terms, although there was a slight decline in margin:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Increased to ₹657.50 million from ₹639.00 million in the year-ago quarter.
EBITDA Margin: Decreased to 17.87% from 18.79% year-over-year.
Net Profit: Grew to ₹474.30 million, up from ₹443.00 million in the same quarter last year, representing a 7.1% increase.

It's worth noting that the net profit also showed sequential growth, rising from ₹403.80 million in the previous quarter to ₹474.30 million in Q4, a quarter-over-quarter increase of about 17.5%.

Dividend Announcement

In a move that is likely to please shareholders, ESAB India's board has recommended a final dividend of ₹42.00 per equity share. This announcement comes as a positive signal, reflecting the company's strong financial position and its commitment to returning value to shareholders.

Financial Performance Table

Metric (in ₹ million)	Q4 (Current Year)	Q4 (Previous Year)	Change (%)
Revenue	3,680.00	3,400.00	+8.2%
EBITDA	657.50	639.00	+2.9%
Net Profit	474.30	443.00	+7.1%

ESAB India's Q4 results demonstrate the company's ability to grow its revenue and profitability in a competitive market environment. While the slight decrease in EBITDA margin may warrant attention, the overall financial performance, including the sequential improvement in net profit, indicates a positive trajectory for the company.