Shares of Antony Waste Handling Cell surge above 7% As Core Revenue Jumps Over 11% Y-o-Y

Shares of Antony Waste Handling Cell Ltd. rose more than 7% today, following the company’s announcement of an 11% y-o-y increase in core revenue for the June quarter which was driven by strong performance in its Collection and Disposal business and a ramp-up at the Waste-to-Energy (WtE) plant in Pimpri near Pune.

Performance at WtE Plant

In its Q1FY25 business update, Antony Waste reported that its WtE plant achieved a Plant Load Factor (PLF) of around 89% during the quarter, up from 71% in the March quarter, which marked its first full quarter of operation.

Increasing Waste Handling

The company managed approximately 1.18 million tonnes of waste in Q1FY25, reflecting a 6% y-o-y increase, even after adjusting for the completion of the Mangalore C&T project and the GNIDA Biomining project last year. Specifically, the Collection and Transportation (C&T) segment handled around 0.47 million tonnes, a 4% growth compared to last year. Additionally, the Waste Processing division managed approximately 0.71 million tonnes.

Revenue Growth

Antony Waste’s total core operating revenue, which includes tipping revenue from C&T and Waste Processing, as well as revenue from power sales, saw an 11% y-o-y increase which is attributed to higher tipping fees and increased revenues from fixed shifts, trips, and household fees. The company also noted steady contributions from its new C&T project in Panvel and power sweeping projects in Nagpur and PCMC.

Circular Economy Initiatives

The company’s circular economy initiatives continued to gain traction, with the sale of Refuse Derived Fuel (RDF) reaching around 34,000 tonnes in the June quarter, up 23% y-o-y. Compost sales also saw an increase, amounting to approximately 6,000 tonnes, up from 2,800 tonnes in the same period last year.

Market Performance

Shares of Antony Waste Handling Cell were trading 6.3% higher at Rs.607.15, reaching an all-time high of Rs.602.45 during the intraday session. The stock is up 22% so far in 2024, with a trading volume of over 763,000 shares, marking the busiest session in five days.

Conclusion: In conclusion, the company’s focus on circular economy projects and expanding processing capacity bodes well for future growth as the company anticipates the launch of a Construction and Debris processing project in Mumbai along with maintaining operational parameters at other sites. Antony Waste Handling Cell Ltd. aims to continue its growth in the Indian Municipal Solid Waste Management industry through these projects.

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.