PL First Cut – Praj Industries Q1FY24

PL First Cut – Praj Industries Q1FY24 – *Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd*

Praj Industries Q1FY24- First Cut- Revenue below estimates; while beat on margins

Result Summary

✳️Praj reported consolidated revenue of Rs7.4bn, flat YoY (vs PLe ~Rs9bn and consensus estimates of Rs8.7bn), on back of continued execution of opening order book (Rs34.1bn as on Q4FY23).

✳️Gross margins came in at 40.3% vs 35.2% in Q1FY23, likely due to business mix and normalizing commodity prices

✳️EBITDA grew 35.6% YoY to Rs713mn (PLe ~Rs794mn and consensus estimate of Rs792mn), with EBITDA margin expanding by 250bps YoY to 9.7% (PL estimate of 8.8%), despite factoring in higher employee cost (up 16% YoY) and other expenses (up ~8%, YoY).

✳️PAT grew ~42.2% YoY to Rs587mn (vs PLe Rs593mn and consensus estimate of Rs586mn) aided by higher other income (up 85.6% to Rs163mn).

✳️The stock is currently trading at PE of 24.9x/23.1x FY24/25E. We have Buy rating on stock with TP of Rs475