Praj Industries (PRAJIND) Q2 24/25 earnings summary

Executive summary

• Commissioned India's first demo facility for biopolymers, showcasing capabilities in renewable chemicals and materials, with production capacities for lactic acid, lactide, and PLA.

• Q2 FY25 consolidated revenue was INR 8.16 billion, down YoY, with profit after tax at INR 538 million, and EBITDA up 2.6% YoY to INR 862 million.

• H1 FY25 consolidated revenue was INR 15.15 billion, down 6.4% YoY, but net profit rose 14.0% YoY to INR 1.38 billion, with improved margins.

• Order backlog at Q2 FY25 end reached INR 41.5 billion, with strong order inflows across bioenergy, engineering, and services.

• Exceptional gain of INR 281.57 million in Q2 FY25 from the sale of land previously classified as "Asset held for sale".

Financial highlights

• Q2 FY25 consolidated income from operations was INR 8.16 billion, down from INR 8.82 billion YoY; PAT was INR 538 million (vs. 623 million YoY).

• H1 FY25 income from operations was INR 15.15 billion (vs. 16.19 billion YoY); PAT was INR 1.38 billion (vs. 1.21 billion YoY).

• Q2 FY25 standalone revenue was INR 7.04 billion, down 10.2% YoY, and net profit was INR 579 million, down 31.2% YoY.

• Export revenue accounted for 27% of Q2 FY25; revenue mix: 68-69% bioenergy, 24% engineering, 8% HiPurity.

• Order intake in Q2 was INR 9.21 billion, with 94% domestic; order backlog as of September 2024 is INR 41.5 billion (72% domestic).

Outlook and guidance

• Expectation of continued strong order inflow in bioenergy and engineering, with normalization of export revenues in coming quarters.

• Management expects revenue to improve as execution in bioenergy accelerates and new GenX facility ramps up.

• Revenue contribution from GenX facility expected to become meaningful from Q4 FY25 and more so in FY26.

• Confident in doubling revenue in three years.

• Strong enquiry pipeline in domestic and international markets for ethanol, CBG, and ZLD solutions.