Fair point! anyone who’s attending cc please ask about this disparity
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The company has guided that they will grow at 20% over the next 2 years with ~22% operating margins.
My expectation is that the company will probably achieve the above guidance, but the PAT could be flat in FY25 due to higher tax.
The future revenue streams look interesting
- vehicle scaping+tyre recycling (almost a done deal)
- battery recycling (started work )
- rPET project with a major FMCG player
The last couple of days gave a good entry point.
The B2G nature of the business however is a big risk.
Disc: Invested
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Financial Performance:
- Core operating revenue increased by 19% in FY '24.
- Total operating revenue excluding contract revenue stood at INR 829 crores, reflecting a 21% year-over-year growth.
- Core EBITDA amounted to INR 198 crores, showing a 29% year-over-year growth.
- Core EBITDA margin was 23%.
- Debt stood at INR 414.6 crores with a net debt of INR 343 crores.
- Weighted cost of debt for the group is around 8.5%.
Operational Performance:
- Managed 1.14 million tons of waste in the quarter, a 10% year-on-year increase.
- Successfully commissioned the 14 megawatts waste-to-energy plant in Pimpri-Chinchwad.
- Achieved a plant load factor of approximately 71% during the initial quarter of operation.
- Generated over 37 million green units of electricity.
- Record RDF sale of 1.47 lakh tons.
- Sold around 10,000 tons of compost during FY '24.
New Projects and Contracts:
- Secured a contract worth approximately INR 386 crores for collection and transportation projects in Panvel Municipal Corporation.
- Secured a biomining contract in CIDCO valued at approximately INR 77 crores.
- Working on a vehicle scrapping business starting with cars and trucks.
- Exploring the possibility of entering the 2-wheeler vehicle scrapping segment.
- Planning capex for potential projects at the Kanjurmarg site.
Regulatory Environment:
- Following EPR norms for recycling PET bottles.
- Vehicle scrapping regulations mandate scrapping of vehicles after 10-15 years depending on fuel type.
- In discussions with BMC for potential capex at the Kanjurmarg site.
Future Outlook:
- Expecting a 20% CAGR in revenue over the next 2 years.
- Anticipating revenue growth from waste-to-energy projects, construction and debris processing, and new contracts.
- Margin guidance in the range of 22% to 24%.
- Focus on environmental sustainability and innovation for future growth.
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Likely Deducted from Deferred Tax Asset. Company had paid extra tax in the past, they’re deducting it now.
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Deferred tax liability in one of the subsidiary (AG Enviro Infra) was written off. This was also discussed in detail in concall.
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This Company Manages Nearly 90% Of Mumbai’s Municipal Waste This Company Manages Nearly 90% Of Mumbai's Municipal Waste - Forbes India
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