Gravita India (GRAVITA) Q4 23/24 earnings summary

Executive summary

• Achieved consolidated revenue from operations of ₹3,160.75 crores in FY 2023-24, up from ₹2,800.60 crores in FY 2022-23, reflecting strong growth in both domestic and export markets.

• Profit after tax (PAT) rose to ₹242.28 crores from ₹204.09 crores year-over-year, with a PAT margin of 7.57% and earnings per share (EPS) of ₹34.88.

• The company maintained a robust balance sheet, with total equity of ₹850.57 crores and a gearing ratio of 65%.

• Board recommended and paid a final dividend of ₹4.35 per share for FY 2022-23 and declared an interim dividend of ₹5.20 per share for FY 2023-24.

Financial highlights

• EBITDA for FY 2023-24 stood at ₹331 crores, up from ₹286 crores in the previous year.

• Operating profit margin improved to 7.45% (standalone), and net profit margin to 6.64%.

• Return on capital employed (ROCE) was 25%, and return on equity (ROE) was 39.35%.

• Debt-to-equity ratio improved to 0.58 from 0.90, reflecting repayment of borrowings and increased profitability.

• Cash flow from operations remained strong at ₹91.04 crores (standalone).

Outlook and guidance

• Vision 2028 targets include 25%+ volume CAGR, 35%+ profitability growth, 30%+ renewable power usage, and 25%+ ROCE.

• Plans to expand into new recycling verticals such as lithium, steel, rubber, and paper.

• Focus on increasing the share of value-added products to over 50% of portfolio and reducing energy consumption by 10%.