Asahi Songwon Colors Limited (NSE: ASAHISONG) Q4 2025 Earnings Call dated May. 12, 2025
Corporate Participants:
Unidentified Speaker
Sayam Pokharna — Director
Gokul M. Jaykrishna — Chief Executive Officer
Arjun Jaykrishna — Executive Director
Analysts:
Unidentified Participant
Aashav Patel — Analyst
Presentation:
operator
It. Sam. Ladies and gentlemen, good day and welcome to the Asahi Songwon Colors Limited Q4FY25 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sym Pokarna from TIL Advisors. Thank you and over to you, Mr. Pokarna.
Sayam Pokharna — Director
Thank you, Michelle. Good morning ladies and gentlemen. Welcome everyone and thank you for taking out the time to join this Q4NFY 25 earnings conference call of Songwon Colors Ltd. The results and investor updates have already been emailed to you and are available on the stock exchange and company website. To take us through today’s results for the quarter and the whole financial year and answer your questions, we have with us from the management team, Mr. Gokul Jai Krishna, Joint Managing Director and CEO Mr. Arjun Jai Krishna, Executive Director Mr. Mitesh Patel, Executive Director Mr. Prateek Shah, Chief Financial Officer and Mr. Saji Joseph, Company Secretary and Compliance Officer.
We’ll be starting with a brief overview of the quarter and financial year from Mr. J. Krishna which will be followed by a Q and A session. Before we proceed ahead, I would like to remind you all that anything and everything that is said on this call reflecting any outlook for the future which can be construed as a forward looking statement must be viewed in conjunction with the risk and uncertainties that we face. These risks and uncertainties have been entailed in our annual reports. Thank you. Over to you Mr. J. Krishna.
Gokul M. Jaykrishna — Chief Executive Officer
Good morning everyone. I am very happy to welcome you all to our Saiz Q4S525 conference call. Being a specialty chemical and API company with reasonably large overall export exposure, we are generally a proxy to the global economy. As we all know, we have witnessed and are actually witnessing very turbulent times with uncertainties and lots of volatility. From some tariffs and the tariff wars to currency, huge currency fluctuations such as which we haven’t witnessed in a very long time. Wars across the world, including in India as well with Pakistan recently. So there is enough and a lot of volatility.
I personally like volatility, volatility, turbulence and uncertainties invariably spring up opportunities which are unusual. Time will tell how RSAI and our team stands up to take advantage of these opportunities, but it is definitely a quick springboard to future growth if we play our cars right as we navigate this uncertain time. I am very happy to report that this year Asahi and our team has stood up well to these challenges and turbulent times and emerged stronger than ever before. I hope that we have created a platform from which we can scale up and grow in a reasonable manner and take advantage of the changing global dynamics.
With this I would like to give you a very snapshot of the consolidated results. All of you. Most of you would have already looked at it so I would not go into the details of it. Rather, I’ll give a snapshot and then we’ll move into a Q and A where you can ask your questions. For the year, our revenues have moved from 429 crores in 2024 to 566 crores in 2025. This is a 32% increase. Our EBITDA has increased from 21 crores in 2024 to 60 crores in 2025. This is A 185% increase in EBITDA.
Our EBITDA margins have doubled from 5% to 10% this year Pat we were negative and now we stand at about 17 crores positive. Our total debt which stood at 200 crores in 2024 March stood at 160 crores this month. We continue to deleverage as our cash flows show a lot of strength. Our cash flows from operations which were 9 crores positive in 2024 have come out to 57 crores positive in 2025. This improvement is on account of four factors. 30 crores from pockets and 25 crores a combination of improvement in payables, receivables and inventory levels.
Looking forward to the coming year. With these turbulent times, there is a lot of consolidation that has happened within our company. We are coming towards the end or have already come to an end of a three year capex cycle. Now we have to as a team at Asahi improve our utilization levels in our new segments of businesses which are the ISO pigment business and the API and continue to do well with our dominating position in the pigment blue business. Going forward we look forward to a top line growth of about 15%, EBITDA growth of about 25% and a PBT growth of about 65% for the next year.
With this I would like to open the floor for questions.
Questions and Answers:
operator
Thank you very much sir. We will now begin with the question and answer session. Anyone who wishes to ask questions may press Star and one on the touchtone phone. If you wish to withdraw yourself from the question queue, you may press STAR and two participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Yashvi from Molecule Vendors. Please go ahead.
Aashav Patel
Hello. Am I audible?
operator
Yes ma’ am. Please proceed.
Aashav Patel
Thank you for this opportunity. So my first question is in the last call you had mentioned about the delay in the capacity expansion due to shipping delays due to the Chinese New Year. What is the update on the new line for yellow pigment? What is incremental capacity that is added or will be added and what is the investment which is made for the capacity expansion?
Gokul M. Jaykrishna
So that delay is now over. The Chinese. The Chinese equipment is already on its way and it should be fully operational within about three to four months. So they should add about 40 tons to our existing capacity of yellow. And what was the other question you want to ask on this account?
Aashav Patel
What is the investment which is made?
Gokul M. Jaykrishna
The capex is about 5 crores which has already been done now. Okay, 5 to 6 crores. I don’t remember the exact number.
Aashav Patel
Can you throw light on the exact number?
Gokul M. Jaykrishna
So it is around 4 crore 80 lakhs. Yeah. So 5 crores. I was right on 5. And this is more or less completely over.
Aashav Patel
Okay. And in the commentary you had mentioned about the tariff opening up an opportunity to scale up the Elvo business. Can you please explain what sort of positive momentum you have started seeing? Are there any fresh inquiries that are with that? We are witnessing and also on the profitability front, we’ve been trying to become part positive in either business for the last few years. Do you think these tariffs in place we will finally be able to achieve it?
Gokul M. Jaykrishna
So I will let Arjun answer this question in detail. Yashvi, but basically the tariffs have certainly thrown up some opportunities. The blue business remains unaffected because there is no competition from China in the blue business. So that largely remains unaffected because India has a very dominating position in the blue business as far as the EZO business is concerned. Would you like to take that question? Yeah.
Arjun Jaykrishna
Thanks Yashvi for the question. As our CEO said the blue business will likely be unaffected as all the players are already Indian. So the tariff is equivalent on all competitors. So there we hope to maintain and continue the good business we’ve been doing in the US for the Isles. It it’s a pretty good opportunity the way the Azo landscape is built as we have said previously. And it’s very well known that China dominates the global share for asos. So even when we talk about the US the large majority of imports of asos were Chinese. That is where the opportunity for all Indian makers is thrown up.
We feel that we are.