Praj Industries has announced its financial results for the second quarter of FY25, showing a consolidated net profit of ₹53.83 crore. This marks a 14% drop compared to ₹62.37 crore in the same quarter last year.
The company’s revenue for Q2 FY25 also decreased by 7.5%, totalling ₹816.19 crore, down from ₹882.33 crore in Q2 FY24.
Despite the drop in profit and revenue, Praj Industries saw a positive change in its earnings before interest, tax, depreciation, and amortisation (EBITDA). EBITDA rose by 3% to ₹86.21 crore, up from ₹83.99 crore a year earlier. This led to an improved EBITDA margin of 10.6%, compared to 9.5% in the previous year.
In the previous quarter (Q1 FY25), Praj Industries reported a net profit of ₹84.18 crore, which was a significant increase of 43.53% from ₹58.65 crore in Q1 FY24. Sales for that quarter also fell by 5.10%, reaching ₹699.14 crore, down from ₹736.72 crore in the same quarter last year.
Praj Industries experienced some challenges in Q2 FY25 despite having a strong order book in its bioenergy sector. The slower pace of execution impacted revenue for the quarter. However, the company improved its margins thanks to lower raw material prices and a favourable sales mix. Employee costs increased due to hiring more staff for Praj GenX and annual pay raises.
The mark-to-market valuation of forward contracts led to a loss in the first half of FY25, contrasting with a profit during the same period in FY24. Higher finance, depreciation, and amortisation costs were attributed to investments in the new Praj GenX facility in Mangalore, which has begun operations, although customer approvals are still pending. Currently, expenditures are focused on building infrastructure, with revenue expected to follow in due time.
Praj Industries Ltd provides many sustainable solutions, including bioenergy, high-purity water, critical process equipment, breweries, and industrial wastewater treatment. It focuses on environmental sustainability, energy solutions, and farm-to-fuel technology, serving over 1,000 customers in more than 100 countries across all six continents, and this number continues to grow.
On October 28, 2024, Praj Industries Ltd’s share price opened at ₹687.95, touching the day’s low at ₹677.55, as of 09:50 AM on the NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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