Antony Waste Handling Cell (AWHCL) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 operating revenue was INR 200 crores, stable year-over-year, with core operating revenue up 6% after adjusting for one-time items; total operating revenue, including recyclables and RDF, reached INR 220 crores.

• Achieved record quarterly tonnage handled at 0.49 million tonnes, with a 4% YoY increase to 1.19 million tonnes in Q2FY25; organic growth in volumes handled at 6.9% YoY excluding expired contracts.

• Major contract win: AG Enviro Infra Projects secured a INR 976 crore C&T contract with Navi Mumbai Municipal Corporation for a third consecutive term.

• Maintained leadership in Swachh Bharat rankings and expanded sustainability initiatives, including significant sales of RDF and compost.

• Consolidated revenue from operations for the half year ended 30 September 2024 was ₹44,821.31 lakhs, with total income at ₹46,003.93 lakhs, showing stable performance compared to the previous year.

Financial highlights

• Processing revenue increased 22% year-over-year, mainly from power sales at the PCMC WtE plant.

• Q2FY25 EBITDA at ₹48.5 crore, margin at 21.4%; Q2FY25 PAT for owners at ₹12.1 crore, down 56% YoY.

• Finance cost rose to INR 12 crores from INR 7 crores year-over-year; depreciation increased by 54% due to new plant launches.

• Net debt as of September 2024 was INR 315 crores, with a net debt-to-equity ratio of 0.3x.

• H1FY25 RDF sales up 14% YoY to 64,750 tonnes; compost sales up over 100% YoY to 10,200 tonnes.

Outlook and guidance

• Expecting 15%-16% top-line growth in H2 FY25, with ramp-up in biomining, C&D, and improved WtE plant PLF.

• Guidance for 23% EBITDA margin for FY25, with steady margins expected over the next three to four years.

• Core revenue CAGR of 25% projected over the next three to five years.

• Focus on cluster-based project bidding, expansion into new states, and rational project selection to drive profitability and efficiency.

• Management remains confident about the recoverability of long outstanding receivables from municipal corporations, supported by legal opinions and ongoing discussions.