Pearl Global Industries (PGIL) Q1 24/25 earnings summary

Executive summary

• Achieved record consolidated Q1 FY25 revenue and profitability, surpassing INR 1,000 crore in revenue and INR 100 crore in adjusted EBITDA for the first time, with strong overseas growth, especially in Bangladesh despite local challenges.

• Revenue grew 17.7% year-over-year, with overseas revenue up 22% and India revenue up 7.3%, supported by new customer acquisitions.

• Net profit for the quarter was INR 67.66 crore, up from INR 57.55 crore in Q1 FY24 and INR 55.03 crore in Q4 FY24.

• Growth was driven by increased orders from existing customers, improved customer relationships, and strong performance in key geographies.

• Exceptional gain from sale of non-core assets contributed to profitability.

Financial highlights

• Consolidated revenue for Q1 FY25 reached INR 1,052.8 crore, up from INR 894.2 crore in Q1 FY24, with total income at INR 1,062.4 crore.

• Adjusted EBITDA was INR 100.4 crore, up 18.8% year-over-year, with margin at 9.5%.

• PAT after minority interest was INR 65.3 crore, up 36% year-over-year, with margin at 6.2%.

• Basic EPS for the quarter was INR 14.99, compared to INR 11.09 in Q1 FY24.

• Dividend of INR 8.75 crore received from Bangladesh subsidiary.

Outlook and guidance

• Confident in maintaining 12%-14% annual revenue growth and 10%-12% EBITDA margin by FY28, with double-digit EBITDA margin targeted by year-end.

• Management maintains a positive long-term view on Bangladesh and expects continued growth from new and existing customers across geographies.

• Focus remains on global footprint expansion, sustainable practices, and increasing market share.

• Order flow and demand outlook are strong across key markets, with growth plans on track barring unforeseen global disruptions.

• Employee stock options granted and allotted, supporting talent retention.