Esab India announces Q2 results: Profit Rises by 12.37% YoY

The comprehensive analytics outlining the performance and outlook of Esab India Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Esab India Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 11.71 %. However, it did see a marginal increase of 2.74 % from the previous quarter. Expenses ticked up slightly by 3.6 % quarter-on-quarter, aligning with the annual rise of 11.43 %. Operating profit, while up 13 % compared to last year, faced a quarter-on-quarter dip of -0.97 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.2 %, but a shrinkage of -0.68 % sequentially. Other income rose by 4.13 % compared to the last quarter, despite an annual growth of 9.57 %. Interest expenses surged remarkably by 0 % from the previous quarter, yet the year-over-year increase remains at a moderate 10 %. Depreciation costs climbed by 13.81 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 11.47 %. Profit before tax grew annually by 13.03 % but saw a reduction from the preceding quarter by -1.69 %.
Tax expenses as a percentage of profits increased slightly by 0.43 % compared to last year, with a more notable quarter-on-quarter increase of 0.92 %. Net profit rose by 12.37 % year-on-year but witnessed a -2.9 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 12.34 % but a quarterly fall of -2.91 %. In summary, Esab India Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Esab India Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 11.71 % year-on-year growth, however, there was a minor increase of 2.74 % from the previous quarter. Expenses rose by 11.43 % compared to the previous year, with a 3.6 % increase quarter-on-quarter. Operating Profit surged by 13 % annually, and saw a -0.97 % decrease from the last quarter.
Net Profit showed yearly increase of 12.37 %, and experienced a -2.9 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 12.34 % annually, however dipped by -2.91 % compared to the last quarter. In essence, while Esab India Limited exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.