Praj Industries Ltd's Q3FY25 Quarter Results
- 31 Jan 2025
Result Summary
- Praj Industries Ltd reported a 4.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 3.5%.
- Its expenses for the quarter were up by 7.0% QoQ and 8.3% YoY.
- The net profit decreased 23.6% QoQ and decreased 41.6% YoY.
- The earnings per share (EPS) of Praj Industries Ltd stood at 2.2 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 866.80 | 829.70 | 837.69 | 4.5% | 3.5% |
Total Expenses | 807.97 | 755.26 | 745.76 | 7.0% | 8.3% |
Profit Before Tax | 58.82 | 74.44 | 91.92 | -21.0% | -36.0% |
Tax | 17.72 | 20.61 | 21.51 | -14.0% | -17.6% |
Profit After Tax | 41.11 | 53.83 | 70.42 | -23.6% | -41.6% |
Earnings Per Share | 2.20 | 2.90 | 3.80 | -24.1% | -42.1% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Praj Industries Ltd is a leading engineering company based in India, primarily engaged in the manufacturing and supply of process equipment and systems. The company specializes in the bioenergy sector, providing solutions for ethanol production, brewery technology, water and wastewater treatment, and other process engineering services. Praj Industries is known for its innovative approach and sustainable technologies, catering to a diverse range of industries including beverages, pharmaceuticals, and chemicals. Recent developments in the company include advancements in biofuel technology, making significant strides in the production of advanced biofuels and renewable chemicals. The company continues to focus on expanding its global footprint through strategic partnerships and collaborations, enhancing its presence in both domestic and international markets.
Revenue
During the third quarter of the fiscal year 2025 (Q3FY25), Praj Industries Ltd reported a total income of ₹866.80 crores. This reflects a quarter-over-quarter (QoQ) growth of 4.5% from ₹829.70 crores in the second quarter of FY25 (Q2FY25), and a year-over-year (YoY) increase of 3.5% from ₹837.69 crores in the third quarter of the previous fiscal year (Q3FY24). The consistent increase in total income indicates an upward trajectory in the revenue stream, which may be attributed to the company's continuous efforts in enhancing its product offerings and expanding its market reach. The revenue growth can also be linked to the increase in demand for sustainable and renewable energy solutions, a sector in which Praj Industries has established a strong presence.
Profitability
Praj Industries Ltd's profitability metrics for Q3FY25 show a decline compared to both the previous quarter and the same period last year. The profit before tax (PBT) for Q3FY25 was ₹58.82 crores, which is a 21.0% decrease from Q2FY25's ₹74.44 crores and a 36.0% drop from Q3FY24's ₹91.92 crores. The tax expense for Q3FY25 was ₹17.72 crores, down 14.0% QoQ and 17.6% YoY. Consequently, the profit after tax (PAT) stood at ₹41.11 crores, marking a 23.6% decrease from the previous quarter and a 41.6% decline from the same quarter last year. The earnings per share (EPS) for Q3FY25 was ₹2.20, a decline of 24.1% QoQ and 42.1% YoY. These figures suggest that while revenue has increased, profitability has been adversely affected, potentially due to rising expenses or other operational challenges.
Operating Metrics
In Q3FY25, Praj Industries Ltd recorded total expenses of ₹807.97 crores, which represents a 7.0% increase from the ₹755.26 crores incurred in Q2FY25 and an 8.3% rise from ₹745.76 crores in Q3FY24. The increase in total expenses may indicate higher operational costs, which could be linked to increased production or expansion activities. The company's focus on innovation and development in the bioenergy sector might have contributed to the elevated expense levels. Despite the rise in expenses, the company has managed to maintain a stable income growth, indicating efficient revenue management. The operating metrics highlight a balancing act between growing revenues and managing rising costs, which is crucial for sustaining long-term financial health.
