PG Electroplast (533581) Q4 23/24 earnings summary

Executive summary

• Achieved consolidated revenue growth of 27.2% year-over-year to ₹2,746.5 crore in FY24, driven by strong performance in product business, especially room air conditioners and washing machines.

• Net profit increased by 77.2% year-over-year to ₹137.3 crore, with EBITDA reaching ₹275 crore, reflecting improved operating leverage and cost control.

• Completed a ₹500 crore Qualified Institutional Placement (QIP), strengthening the balance sheet and reducing net debt.

• Formed a 50-50 joint venture, Goodworth Electronics, for TV manufacturing, and acquired Next Generation Manufacturers to expand capacity.

Financial highlights

• Revenue from operations rose to ₹2,74,649.53 lakh in FY24 from ₹2,15,994.75 lakh in FY23, a 27.16% increase.

• Net profit grew to ₹13,701.22 lakh in FY24 from ₹7,746.86 lakh in FY23, up 76.86%.

• EBITDA margin improved to 10.01% in FY24 from 8.35% in FY23.

• Return on capital employed (ROCE) at 21.6% and return on net worth (RONW) at 19.11%.

• Operating cash flow remained strong, supporting capital expenditures and working capital optimization.

Outlook and guidance

• Targeting consolidated revenue of at least ₹3,650 crore for FY25, a 32.9% increase over FY24.

• Net profit guidance for FY25 is ₹216 crore, a 58% increase over FY24.

• Product business expected to grow by 59% to over ₹2,650 crore in FY25.

• Planned capital expenditure of ₹350-380 crore in FY25 for new manufacturing units and capacity expansion.