Ethanol stock falls 14% after announcing Q2 results
Shares of Praj Industries Limited fell nearly 14% to ₹610.9 after the company reported an 8.7% QoQ decline in net profit for Q2 FY25, amounting to ₹84 crores. The company also saw a 31.4% QoQ drop in revenue from operations, totaling ₹699 crores. Despite these results, Praj’s order book remains strong at ₹4,149 crores, with a slight increase in order intake. The stock, however, has shown positive annual returns of 31.4%.
During Monday’s trading session, the shares of one of the leading biotechnology and engineering company globally slumped nearly 14 percent to Rs. 610.9 on BSE, after the company reported Q2 FY25 financial results with a net profit declined by 8.7 percent QoQ.
With a market cap of Rs. 12,836.6 crores, at 01:32 p.m., the shares of Praj Industries Limited were trading in the red at Rs. 698.35, down by nearly 1.8 percent, compared to its previous closing price of Rs. 710.9.
What’s the news:
The fluctuations in the share prices were observed after Praj Industries Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Friday post-market hours.
For Q2 FY25, Praj Industries reported consolidated revenue from operations of Rs. 699 crores, reflecting a decline of around 31.4 percent QoQ from Rs. 1,019 crores in Q1 FY25, as well as a marginal decrease of about 5.2 percent YoY from Rs. 737 crores in Q2 FY24.
The company’s net profit for Q2 FY25 fell to Rs. 84 crores, representing a significant decline of around 8.7 percent QoQ from Rs. 92 crores in Q1 FY25, but a year-on-year increase of nearly 42.4 percent from Rs. 59 crores in Q2 FY24.
In Q2 FY25, the company’s order book reached Rs. 4,149 crores, with an order intake of Rs. 921 crores.
Praj Industries reported an order intake of Rs. 921 crores for the quarter, reflecting a 3.7 percent QoQ increase from Rs. 888 crores in Q1 FY25, but a decline of 13.4 percent year-on-year from Rs. 1,063 crores in Q2 FY24.
EBITDA for Q2 FY25 reached Rs. 86.2 crores, representing a marginal increase of around 2.6 percent YoY from Rs. 84 cores in Q2 FY24, with an EBITDA Margin of 10.56 percent, up by 104 bps YoY from 9.52 percent, during the same period.
According to the company, despite maintaining a strong order book in the bioenergy sector, the company’s revenue for the quarter was affected by a slower pace of execution.
Improved margins of the company resulted from a decline in raw material prices and a favourable sales mix.
As Praj Industries planned, the GenX facility in Mangalore has begun operations, and customer approvals for the facility are currently in progress. The ongoing expenditures are focused on infrastructure development, with revenue anticipated to materialize in due course.
Stock Performance:
The stock has delivered positive returns of nearly 31.4 percent in one year, as well as around 27.5 percent returns in the last six months. So far in 2024, the shares of Praj Industries have given positive returns of about 25.3 percent.
About the company:
Incorporated in 1983, Praj Industries Limited is engaged in the business of process and project engineering, along with providing design and engineering services.
The company offers a wide range of sustainable solutions in bioenergy, water purification, critical process equipment, breweries, and industrial wastewater treatment. The company is also focused on the environment, energy and farm-to-fuel technology solutions.
Source Link : https://tradebrains.in/features/ethanol-stock-falls-14-after-announcing-q2-results/
