Particulars (Rs. In cr) | Q1FY25 | Q1FY24 | YoY (%) | Q4FY24 | QoQ (%) |
---|---|---|---|---|---|
Revenue from operations | 1321.00 | 678.00 | 95.00% | 1077.00 | 23.00% |
EBITDA | 135.00 | 68.00 | 99.00% | 120.00 | 12.00% |
EBITDA Margin (%) | 10.20% | 10.00% | - | 11.14% | -94 bps |
PAT | 85.00 | 34.00 | 149.00% | 72.00 | 19.00% |
EPS (Rs.) | 3.21 | 1.49 | 115.00% | 2.77 | 16.00% |
Source: Company Filings; stockaxis Research
Q1FY25 Result Highlights
PG Electroplast (PGEL) delivered remarkable earnings growth in Q1FY25 with revenue
and operating profits surging nearly 2-fold YoY. The business continues to exhibit
strength on most fronts on the back of secular tailwinds in the AC industry. Consolidated
net sales exhibited robust growth of 95% YoY to Rs.1321 cr as rising temperatures
in India fueled the volumes of room Acs (RACs), air coolers, and cooling solutions
in the quarter gone by. However, average sales realizations declined on account
of lower commodity prices. Operating profits doubled to Rs.135 cr while operating
margins improved YoY due to cost control and operating leverage. PAT more than doubled
to Rs.85 cr on the back of healthy revenue growth and solid operational performance.
The Product business contributed 75.2% of the total revenues in 1QFY2025. Room AC business at INR 882 crores grew 130% during the period while the Washing Machines business had a growth of 72% YoY. Other business verticals like Plastics, Electronics, and Moulds also exhibited steady growth.
Major Highlights of Q1FY25
Key Conference call takeaways
PG Electroplast reported a beat in Q1FY25 across all its key metrics driven by strong growth across all its business segments. PGEL reported strong growth in the product business driven by RAC and strong margins due to operating leverage. PGEL is receiving significant enquiries and commitment for new business across business segments. New customers are shifting from China to India. The company is uniquely positioned in the consumer durable & plastics space in India and would derive higher revenue growth by growing its market share in the customer outsourcing wallet. Management foresees large opportunities in plastic moulding in consumer durables in appliances like a) Washing machines b) Room Air Conditioners c) Refrigerators d) Ceiling Fans and e) Sanitaryware products and opportunities in the ODM space for products like a) Air coolers, b) Washing Machines and Room Air conditioners. PGEL will sustain its growth momentum aided by the emerging opportunities in the EMS space like Strong industry tailwinds, Capital expenditure, strong execution capabilities, new product launches, encouraging guidance from the management, improving operational efficiencies leading to better profitability & higher cash flows, established client relationships and diversified product profile.
Over the long run, PGEL’s business has multiple tailwinds in the form of low penetration of electronics (RACs, WMs) in the country. The company is pursuing an organic growth strategy by ramping up its existing capacity and capabilities in each of its product verticals to achieve higher value addition, and better economies of scale on the back of backward integration. At a CMP of Rs.434, the stock is trading at 42x FY26E. We maintain a HOLD rating on the stock.
Particulars (Rs. In cr) | Q1FY25 | Q1FY24 | YoY (%) | Q4FY24 | QoQ (%) |
---|---|---|---|---|---|
Revenue from operations | 1321.00 | 678.00 | 95.00% | 1077.00 | 23.00% |
COGS | 1082.00 | 555.00 | 95.00% | 862.00 | 26.00% |
Gross Profit | 239.00 | 123.00 | 94.00% | 215.00 | 11.00% |
Gross Margin (%) | 18.08% | 18.00% | - | 19.93% | -185 bps |
Employee Benefit exps | 62.00 | 36.00 | 74.00% | 55.00 | 13.00% |
Other expenses | 46.00 | 21.00 | 119.00% | 43.00 | 7.00% |
Other Income | 4.00 | 1.00 | 202.00% | 3.39 | 15.00% |
EBITDA | 135.00 | 68.00 | 99.00% | 120.00 | 12.00% |
EBITDA Margin (%) | 10.20% | 10.00% | - | 11.14% | -94 bps |
Depreciation and amort | 15.00 | 11.00 | 36.00% | 14.00 | 11.00% |
EBIT | 120.00 | 57.00 | 111.00% | 106.00 | 12.00% |
EBIT Margin (%) | 9.06% | 8.36% | 70 bps | 9.88% | -82 bps |
Finance cost | 18.00 | 14.00 | 31.00% | 16.00 | 16.00% |
PBT | 101.00 | 43.00 | 137.00% | 91.00 | 12.00% |
Tax expenses | 16.00 | 9.00 | 89.00% | 19.00 | -14.00% |
PAT | 85.00 | 34.00 | 149.00% | 72.00 | 19.00% |
EPS (Rs.) | 3.21 | 1.49 | 115.00% | 2.77 | 16.00% |