Praj Industries Q2 FY25 Financial Results: Order Intake Hits ₹9,210 Million Amidst Revenue Decline

Praj Industries Ltd released its unaudited financial results for the second quarter and half year ending September 30, 2024. The company reported a healthy order book, standing at ₹41,490 million as of Q2 FY25, with an order intake of ₹9,210 million during the quarter.

Q2 FY25 Performance 

In the second quarter of FY25, Praj Industries Ltd reported consolidated performance with an operating income of ₹8,162 million, indicating a decline of 7.5% year-on-year (YoY). The net profit for the quarter was ₹538 million, down 13.8% YoY, while the operating EBITDA stood at ₹862 million, reflecting a modest increase of 2.6% YoY. 

H1 FY25 Performance 

For the first half of FY25, the company’s consolidated operating income reached ₹15,153 million, which represented a decrease of 6.4% YoY. However, the operating EBITDA improved to ₹1,781 million, showcasing an increase of 11.7% YoY. The net profit for the half-year was ₹1,380 million, marking a growth of 14.0% YoY.

Performance Highlights

Despite having a robust order book in its bioenergy business, Praj Industries experienced a slower pace of execution, impacting its revenue for the quarter. However, improved margins were noted, attributed to a decline in raw material prices and a favourable sales mix.

The rise in employee costs can be linked to the expansion of the Praj GenX services business and the annual increments for existing staff. Additionally, the mark-to-market adjustments of forward contracts resulted in a loss during H1 FY25, in contrast to a profit recorded in H1 FY24.

The financial report also highlighted higher finance costs and depreciation & amortization expenses, which were mainly due to the capital expenditures associated with the new facility at Praj GenX in Mangalore. The facility has commenced operations, with customer approvals currently in progress. While the initial expenditure is geared toward infrastructure development, the expected revenue from this facility is anticipated to materialize in the near future, bolstering the company’s growth trajectory.

On October 29, 2024, Praj Industries share price opened at ₹700.45, touching the day’s low at ₹695.15, as of 10:45 AM on the NSE.

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