Antony Waste Handling Cell (AWHCL) Q3 24/25 earnings summary

Executive summary

• Achieved record high quarterly operating revenue of INR 243 crore in Q3 FY25, up 12% year-over-year, driven by higher compost, RDF revenues, and increased tipping fees.

• PAT for owners grew 23% year-over-year to INR 15.8 crore in Q3 FY25, with consolidated net profit at INR 17.76 crore.

• Managed 1.18 million tons of waste in Q3 FY25, a 3% increase year-over-year, and maintained leadership in the Indian municipal solid waste sector.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024.

• Secured a new INR 976 crore contract from Navi Mumbai Municipal Corporation, with phased revenue ramp-up expected by end of Q1 2026.

Financial highlights

• EBITDA for Q3 FY25 was INR 59 crore, up 18% year-over-year, with margin expanding to 24%.

• PAT for the quarter was INR 180 million, up 16% year-over-year; PAT margin at 7.2%.

• Gross debt as of December 2024 stood at INR 4.31 billion; net debt at INR 3.66 billion; net debt-to-equity ratio at 0.4x-0.5x.

• EPS (not annualized) for Q3 FY25 was INR 5.6, up from INR 4.5 in Q3 FY24.

• Outstanding receivables at INR 225 crore, with INR 38 crore outstanding for more than 365 days (excluding retention amounts).

Outlook and guidance

• Expecting 15%-18% revenue growth for next year, with 25% CAGR targeted over the next 3-5 years based on project pipeline.

• EBITDA margin expected to remain at or above current levels, with upward traction from recycled product sales and volume efficiencies.

• CapEx guidance for FY25 remains at INR 78 crore; company aims to be debt-free in 4.5-5 years if no large new projects are added.

• Focus on cluster-based project bidding, expansion into new states, and revenue diversification through waste-to-energy, bio-mining, and recyclables.

• Management confident in recoverability of long-outstanding receivables under legal dispute, with no material adjustments anticipated for tax demands under appeal.