Antony Waste Handling Cell (AWHCL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 operating revenue reached INR 198 crore, with total revenue at INR 232-233 crore, reflecting 11% year-over-year growth and driven by improved operational efficiency, new project contributions, and record sales of RDF and compost.

• Waste-to-energy plant achieved a plant load factor of 89%, managed 1.18 million tons of waste, generated over 27 million green units, and avoided 3,353 tonnes of CO₂e.

• The company operates the largest single-location waste processing plant in Asia, handling ~90% of Mumbai's waste, and has a strong presence across 9 states with 35+ projects.

• Launch of a construction and debris project in Mumbai and ongoing expansion into vehicle scrapping and tire recycling, with land acquisition underway.

• Integrated waste-to-energy project in Pimpri Chinchwad commenced commercial power sales in Oct'23, generating 14 MW of clean energy.

Financial highlights

• Q1 FY25 EBITDA was INR 55-55.3 crore, up 6% year-over-year and 27% sequentially, with an EBITDA margin of 23.8%.

• PAT for Q1 FY25 was INR 21 crore, down 29% sequentially and 6% year-over-year; PAT margin at 9.1%.

• Finance costs increased from INR 7 crore to INR 13 crore, and depreciation rose by 56% due to the waste-to-energy plant launch.

• Gross debt stood at INR 389 crore, with net debt at INR 308 crore and a net debt to equity ratio of 0.4x-0.5x.

• DSO improved to 79-86 days from 115-103, reflecting better cash flow.

Outlook and guidance

• Core revenue growth guidance for FY25 is 14%-18%, with EBITDA margins expected to remain at 23%-24%.

• Sustainable CAGR of around 20% in core operating revenue anticipated, supported by new projects and improved financial flexibility.

• Focus remains on expanding in clusters, rational project selection, and moving up the MSW value chain, including WTE, segregation, and bio-mining.

• The company aims to capitalize on the doubling of India's MSW market in the next five years and increasing privatization trends.

• Construction and debris business expected to generate INR 30 crore annualized revenue with margins slightly above current averages.