Praj Industries Q2FY23 PAT up 44.4% at Rs48.13cr as higher material costs puts pressure on profit growth

19 Oct 2022 , 08:05 PM

Praj Industries reported 64.64% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs876.58cr. Sequential revenues were up 20.1%.

Praj operates in the field of process and project engineering and has been one of the top performers in the recent past. The company also caters to the alternate energy segment and has been a big beneficiary of the ethanol rush in recent times.

The company has seen a recent surge in demand as ethanol capacities are expanding across sugar mills in India.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 44.40% at Rs48.13 crore while the profits were up 16.65% sequentially.

The profit growth was driven by growth in top line amidst robust demand. However, the profit growth was slower than sales growth due to a spike in raw material costs and other expenses in the quarter.

Net margins came in at 5.49% for Q2FY23 as compared to 6.26% in the year ago quarter and 5.65% in the sequential June 2022 quarter. Due to a spike in trade receivables, the net cash generated operations by Praj Industries in the first half of FY23 fell to negative zone.

Financial highlights for Sep-22 compared yoy and sequentially

	Praj Industries
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 876.58	₹ 532.41	64.64%	₹ 729.87	20.10%
Net Profit (Rs cr)	₹ 48.13	₹ 33.33	44.40%	₹ 41.26	16.65%
Diluted EPS (Rs)	₹ 2.62	₹ 1.82		₹ 2.25
Net Margins	5.49%	6.26%		5.65%