Ganesha Ecosphere (514167) Q1 24/25 earnings summary

Executive summary

• Achieved strong year-on-year growth in Q1 FY25, with consolidated revenue rising to ₹33,654.97 lakh and PAT increasing to ₹2,254.63 lakh, rebounding from a weak Q1 FY24.

• Standalone revenue for Q1 FY25 was ₹24,408.93 lakh, with PAT at ₹2,101.53 lakh, up from ₹875.99 lakh in Q1 FY24.

• EPS for Q1 FY25 reached ₹8.91 (consolidated) and ₹8.28 (standalone), both significantly higher year-over-year.

• Textile industry faces overcapacity and cheap imports from China, pressuring pricing and demand.

• Capacity utilization across spinning units in India is at 65%-70%, below the historical average of 80%-85%.

Financial highlights

• Q1 FY25 consolidated EBITDA rose to ₹47.7 crore (14.2% margin), up from ₹25.5 crore (10.0%) year-over-year.

• Standalone EBITDA for Q1 FY25 was ₹24.95 crore (10.2% margin), up from ₹17.2 crore (7.4%) in Q1 FY24.

• Net profit for Q1 FY25 was ₹21 crore (standalone), 2.4x higher than Q1 FY24 and at par with the previous quarter.

• Cash profit for the quarter was ₹36.0 crore, up from ₹15.7 crore year-over-year.

• EBITDA per ton improved to ₹12,849 (consolidated) and ₹8,825 (standalone), both up significantly year-over-year.

Outlook and guidance

• Expectation of improved earnings as PET bottle scrap prices and sea freight costs moderate from August 2024.

• Third rPET granules production line operational, with ramp-up expected by September and full utilization by December 2024.

• Revenue guidance for FY25 is ₹1,500-1,600 crore, requiring 85% capacity utilization at Warangal plant.

• Focus remains on high-value products, export market expansion, and increasing market share in technical and household textiles.

• Operating margins of 14%-15% on a consolidated basis are expected to be sustainable.