Gravita India (GRAVITA) Q1 24/25 earnings summary

Executive summary

• Achieved strong Q1 FY2025 results with 29% year-over-year growth in revenue, EBITDA, and PAT, supported by robust volume increases across lead, aluminum, and plastics.

• Strategic focus on expanding capacity to over 500,000+ MTPA by FY27 with Rs. 600+ crore capex and diversification into lithium-ion, steel, and paper recycling.

• Committed to ESG roadmap and sustainability initiatives, including increased renewable energy use and energy efficiency.

• Domestic scrap sourcing rose to 42% of total, up over 50% year-over-year, driven by regulatory changes.

• Closure of non-operational subsidiaries in Jamaica and Costa Rica post quarter-end; no impact on future plans.

Financial highlights

• Q1 FY2025 consolidated revenue grew 29% year-over-year to ₹908 crore; EBITDA at ₹92.88 crore; PAT at ₹68.98 crore.

• Adjusted EBITDA margin at 10.05%; PAT margin at 7.42%.

• Value-added products contributed 47% to revenue as of July 2024.

• Interim dividend of ₹5.20 per share (₹35.90 crore total) paid during the quarter.

• Other income for the quarter: ₹3.57 crore operational, ₹3.3 crore non-operational.

Outlook and guidance

• Targeting over 25% CAGR in volume and 35% CAGR in profitability through FY2028.

• PAT projected to reach ₹750-800 crore by FY2028 if targets are met.

• CapEx of ₹600 crore planned through FY2027, primarily self-funded.

• Tax rate expected to remain at 10%-11% for the next 2-3 years.

• Working capital days targeted to reduce to 65-70 over three years.