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 standalone at INR 6.01 billion, down 7.6% YoY.

• Consolidated net profit rose to INR 841.81 million, up from INR 586.72 million YoY, aided by an exceptional gain from land sale.

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

• Order backlog reached INR 40.44 billion, with Q1 order intake at INR 8.88 billion.

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

Financial highlights

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

• Profit before tax (PBT) before exceptional items was INR 788.8 million, up from INR 777.03 million YoY.

• Profit after tax stood at INR 841.81 million, up from INR 586.72 million in Q1 FY24.

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

• Export revenues rose 24% YoY, accounting for 23% of total revenue.

Outlook and guidance

• Management expects resolution of feedstock policy issues to unlock domestic order finalizations and execution.

• Order booking for the year is expected to surpass the previous year, with a healthy pipeline in both domestic and international markets.

• Revenue generation from the new Mangalore facility is expected to ramp up from Q2 FY25, with full potential reached in about two years.

• No specific revenue guidance provided, but management aims for better results than last year and remains on track for long-term growth targets.

• Strong domestic and international enquiry pipeline, especially in alternative feedstocks and grain-based ethanol.