Wednesday, September 27, 2023
    HomeFinancePraj Industries' Q4FY23 Results Show Strong Performance.

    Praj Industries’ Q4FY23 Results Show Strong Performance.

    Related stories

    IBA founder Vamsi Krishna predicts a positive future for the beauty industry

    The SB Innovations and Indian Beauty Association (IBA) organized...

    Inspection Tour Led by Lt. Governor V K Saxena Aims to Enhance Civic Amenities in East Delhi

    • Discover how Lieutenant Governor VK Saxena conducted a comprehensive inspection tour to address cleanliness, sanitation, and civic facility issues in East Delhi neighborhoods.
    • Learn about the directives issued to enhance roads, drainage systems, and public spaces, as well as his commitment to monitoring progress and resolving resident concerns.

    Collector Pravinya urges for the preservation of heritage and culture in Warangal

    Warangal District Collector P Pravinya and Municipal commissioner Shaik...

    Kishan Reddy announces PM’s visit to Telangana in the first week of October.

    Union Minister of Culture and Tourism, G Kishan Reddy,...
    - Advertisement -

    Praj had a good quarter with revenue growth of about 21% and EBITDA margin expansion of 148bps YoY to 10.4%. The orders for FY23 increased by 17% YoY to Rs50.6bn, driven by Bio Energy segment’s 1G ethanol orders (up 22%-Rs33bn). Recently, Praj collaborated with IOCL and Air Asia for commercial flight trials with a blend of Sustainable Aviation Fuel (SAF). The company is also planning to invest in a modern manufacturing facility for Energy Transition and Climate Action (ETCA) segment (Rs1bn) and a demo plant for Polylactic Acid (PLA) for commercialization of bioplastics (Rs600mn).

    Praj is expected to benefit from upcoming opportunities due to its strong leadership, global presence, and future-ready technologies. The company’s revenue/PAT CAGR is estimated to be ~8%/16% from FY23-25E. The stock is currently trading at PE of 23x/21.3x FY24/25E. The ‘BUY’ rating is maintained with a revised TP of Rs475.

    - Advertisement -

    Praj reported strong revenue growth of 20.8% YoY to Rs10bn, owing to strong execution in Bioenergy segment (up 31% YoY to Rs7.1bn). Gross margins came in at 41%, and EBITDA grew 40.8% YoY to Rs1bn. PAT grew 52.9% YoY to Rs881mn aided by higher other income.

    Order inflows for Q4FY23 came in at Rs10.4bn, down 5.8% YoY, with the order book standing healthy at Rs34bn, comprising of Bio energy (84%), Hi-Purity (5%) and Engineering (11%). Within exports market, Low carbon ethanol is emerging as a good opportunity in the USA.

    - Advertisement -
    Rajesh M
    Rajesh M
    Latest News from Hyderabad, Telangana, India & World!

    Follow us


    Contribute News

    You can contribute an article to Telangana Tribune by dropping a mail at

    Latest stories


    Please enter your comment!
    Please enter your name here