PG Electroplast’s Q3 Net Profit Soars 109% YoY

8 Feb 2025 , 10:29 PM

PG Electroplast Ltd (PGEL) has posted a 109% year-on-year (YoY) rise in net profit of ₹40.1 crore against ₹19.2 crore YoY in Q3 FY25. Revenue from operations for the company increased 81.9% YoY to ₹967.7 crore, led by strong product business sales of ₹663 crore.

On the operating level, EBITDA in Q3 FY25 grew by 102.9% YoY to ₹85.2 crore. EBITDA margin increased to 8.8%, compared to 7.9% in Q3 FY24. PG Electroplast 9th September, 2023 (9M FY25). For the quarter, net sales rose 77.2% YoY ₹2,959.67 crore. Operating profit (EBITDA) rose 85.5% year-on-year to ₹287.44 crore from ₹154.96 crore in 9M FY24.

Net profit grew 120.9% YoY to ₹144.53 crore, against ₹65.43 crore in the same period last fiscal. In Q3 FY25, PG Technoplast (a 100% subsidiary of PGEL) reported revenue of ₹620 crore.

The room air conditioner (RAC) business grew 179.5% YoY, with strong demand expected entering summer. The washing machine business achieved YoY growth of 64.5%, exceeding industry growth figures. The electronics ex-sourced-to-go business of the TV subsidiary is contributing 7% of total revenues, up 15.6 times YoY.

Goodworth Electronic’s TV Business earned a revenue of ₹436.56 crore in 9M FY25, up from ₹253.63 crore in 9M FY24, showing a year-on-year growth of 72.1%.

For the trailing 12 months ending in December 2024, PG Electroplast showcased robust capital efficiency metrics. Return on Capital Employed (ROCE) was 23.5%, a powerful indicator of effective capital utilization. Return on Equity (ROE) was 11.9%, giving shareholders a good return.

Net Fixed Asset Turnover improved to 5.34x demonstrating operational efficiency. The company is expanding its manufacturing capacities and products.

Apart from the new platforms for room ACs and washing machines, PGEL also plans to expand production capacity in air coolers. The order book remains strong and is anticipated to grow further in FY25.

FY25 revenue guidance was raised to ₹4,550 crore, implying 65.7% YoY growth. It has also raised its net profit target for FY25 to ₹280 crore, 104.5% higher than FY24’s ₹137 crore.

Goodworth Electronics is expected to contribute ₹550 crore revenue in FY25, lifting the consolidated revenue estimate to ₹5,100 crore. In FY25, product business revenues are estimated to grow 98% YoY reaching ₹3,300 crore from ₹1,668 crore in FY24. PG Electroplast has proposed a capital expenditure (capex) plan for FY25 at around ₹370-380 crore.

To cater to the future growth, the company is commissioning two new greenfield facilities in North India and expanding its Supa manufacturing units. With the increased capacities and strategic investments, PGEL is poised to play a significant role in India’s consumer durables and plastics industry.