Praj Industries (PRAJIND) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated operating income was INR 6.99 billion, down from INR 7.36 billion YoY, with strong opportunities in strategic areas and continued focus on innovation and technology leadership.

• Consolidated net profit rose to INR 841.81 million, up 43.4% YoY, aided by a one-time gain from land sale; standalone net profit was INR 918.40 million.

• EBITDA margin improved by 291 basis points YoY, with consolidated EBITDA at INR 920 million, up 21.9% YoY.

• Bioenergy remains the largest segment, contributing 72% of Q1 FY25 revenue.

• Significant progress in biopolymer technology, with the first batch of lactic acid 90% produced at the Jejuri demonstration plant.

Financial highlights

• Consolidated income from operations was INR 6.99 billion in Q1 FY25, down from INR 7.36 billion in Q1 FY24.

• Profit after tax rose to INR 841.81 million from INR 586.72 million YoY; standalone profit was INR 918.40 million, up from INR 491.69 million.

• Diluted EPS (consolidated) at INR 4.58, up from INR 3.19 YoY; standalone at INR 5.00, up from INR 2.68.

• Export revenues accounted for 23% of Q1 FY25, a 24% increase over last year.

• EBITDA margin improved by 291 basis points YoY, driven by lower input costs and favorable revenue mix.

Outlook and guidance

• Management expects order booking for the year to surpass the previous year, with a healthy pipeline in domestic and international markets.

• Revenue generation from the new Mangalore facility is expected to ramp up from Q2, with full potential reached in about two years.

• Capex for FY25 is projected at INR 70-100 crore, with higher allocation expected next year for new projects.

• No specific revenue guidance provided, but management aims for better results than last year and remains on track for 3x growth by 2030.

• Continued focus on energy transition, climate action, and modularized solutions for ZLD and carbon capture.