Mold-Tek Packaging (533080) Q1 24/25 earnings summary

Executive summary

• Achieved 7.5% year-over-year and 9.07% sequential volume growth in Q1 FY25, with EBITDA up 2.77% YoY and 2.5% QoQ, though per kg EBITDA declined due to capitalization of costs ending as new plants commenced production.

• Net sales increased by 11.22% quarter-on-quarter (Q1 FY25 vs Q4 FY24), reaching ₹196.72 crores.

• Three new plants (Cheyyar, Panipat for ABG, and Sultanpur for pharma) are now operational, but currently running at 15%-25% utilization, expected to ramp up in coming quarters.

• Commercial supplies to Grasim Industries (Aditya Birla Group) and pharma packaging unit began, with audits completed for ISO and DMF certifications.

• EBITDA rose by 2.46% quarter-on-quarter to ₹36.67 crores, but profit before tax declined by 6% and net profit dropped by 8% sequentially due to higher depreciation and finance costs.

Financial highlights

• Q1 revenue: INR 196.5 crores; Paints: INR 83.5 crores, Lubes: INR 46.7 crores, Food: INR 41.6 crores, Qpack: INR 23.8 crores, Pharma: INR 0.8 crores.

• Q1 volumes: Paints 4,605 tons, Lubes 2,574 tons, Food & FMCG 1,365 tons, Qpack 1,331 tons, Pharma 19 tons.

• EBITDA for Q1 FY25: ₹36.67 crores, up 2.46% from Q4 FY24 and 2.77% year-over-year.

• Profit before tax for Q1 FY25: ₹22.19 crores, down 6% from Q4 FY24 and 10.4% year-over-year.

• Net profit for Q1 FY25: ₹16.53 crores, down 8% from Q4 FY24 and 11.76% year-over-year.

Outlook and guidance

• Maintains mid-teen (15%) volume growth guidance for FY25, despite Q1 growth of 7.5%, requiring 17%-18% growth in the remaining quarters.

• Pharma segment expected to contribute INR 15-20 crores in FY25, with significant ramp-up from Q3 onwards and higher EBITDA margins (INR 100-150 per kg depending on product mix).

• Targeting INR 1,000 crores topline and INR 100 crores PAT by FY26, driven by pharma and ABG ramp-up.

• Capacity expansion underway at Grasim Industries plants to support anticipated future growth.

• Commercial supplies in pharma packaging expected to ramp up from October 2024, with new product developments in progress.