Pakka (516030) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw continued international expansion, including key leadership hires, US business launch planning, and investor presentations for equity funding.

• Project Jagriti in India and the Kawok project in Guatemala are major growth drivers, with commissioning targeted for late 2025 and late 2026, respectively.

• Ongoing innovation in flexible packaging, molded products, and delivery solutions, with several prototypes and pilot trials underway.

• Consolidated revenue for Q1 FY25 was ₹9,903.04 lakhs, up from ₹9,748.27 lakhs in Q4 FY24 but down from ₹10,766.04 lakhs in Q1 FY24.

• Total comprehensive income attributable to owners was ₹807.28 lakhs for Q1 FY25, compared to ₹1,398.52 lakhs in Q1 FY24.

Financial highlights

• Q1 FY25 revenue reached INR 99.6 crore, up from INR 98 crore in the previous quarter; net profit was INR 15.88 crore, up from INR 15.64 crore.

• Export share in Wrap & Pack increased to 29% of overall volume, up 1% sequentially.

• Molded products segment saw a slight revenue decline to INR 14.51 crore from INR 14.67 crore, with a volume-related hit of INR 41 lakhs.

• FY24 revenue declined slightly to INR 405 crore from INR 408 crore in FY23, mainly due to lower NSR and volumes.

• Basic EPS (consolidated) for Q1 FY25 was ₹2.18, down from ₹3.77 in Q1 FY24.

Outlook and guidance

• U.S. business launch and sales pipeline for flexibles targeted for this quarter, with new product launches planned for Q2 FY25.

• Project Jagriti expected to commission by end of 2025, with ramp-up to 75% efficiency in the first year and above 90% the next.

• Revenue target of INR 8,000 crore (approx. $1 billion) by 2030, driven by India and Guatemala projects and further innovation.

• Margins for flexible packaging expected to be minimal in the current year, with improvement anticipated as scale and customer base grow.

• Aggressive market entry in UAE and GCC for compostables, with a focus on D2C and new product categories.