The shares of the waste processing company gained up to 9 percent after the company bagged a prestigious work order for Rs 908 crore from AG Enviro Infra Projects Private Limited
Antony Waste Handling Cell Ltd has a market capitalization of Rs 2,079.84 crore, the shares were trading at Rs 735.60 per share, increasing around 5.24 percent as compared to the previous closing price of Rs 698.95 apiece.
Reason for Rise:-
The company shares have seen positive movement after Antony Waste Handling Cell Ltd bagged a prestigious work order for Rs 908 crore from AG Enviro Infra Projects Private Limited for the Collection & Transportation of Municipal Solid Waste and Related allied works in Navi Mumbai Municipal Corporation.
Financial condition:-
Looking forward to the company’s financial performance, revenue climbed by 2 percent from Rs 222 crore in Q1FY24 to Rs 227 crore in Q1FY25 but during the same time, net profit shrunk by 9 percent from Rs 23 crore to Rs 21 crore.
Operational Performance:-
The Waste-to-Energy (WTE) plant improved its operational efficiency with a Plant Load Factor of 89%, up from 71% in Q4 FY’24, producing over 27 million green units. This reflects a strong performance in energy generation and optimized waste-to-energy conversion.
In waste management, the company processed 1.18 million tons of waste, a 6% YoY increase. It achieved record sales of 34,000 tons of Refuse Derived Fuel (RDF), up 23% YoY, and compost sales reached 6,000 tons, with expectations for continued growth.
New Projects:-
The company launched a Construction and Debris project in Mumbai on August 14, 2024, addressing regional waste management needs. Proposed guidelines from the Ministry of Environment, mandating 20% recycled materials in construction, are expected to drive demand for the company’s waste management services.
Management guidance:-
Management expects a sustainable 20% CAGR in core operating revenue, with projected growth of 14% to 18% for FY’25, excluding compost and RDF sales. This outlook highlights the company’s focus on strengthening its core operations while maintaining consistent revenue growth.
Challenges and Management Sentiment:-
The company faces challenges due to municipal elections impacting payment cycles, resulting in higher DSO. However, management remains optimistic about growth in the MSW market, driven by urbanization and regulatory support, positioning the company well for future opportunities.
Despite rising interest and depreciation costs from capex, management is confident in maintaining EBITDA margins between 23% and 24%. The company believes its competitive edge in integrated C&T and processing contracts, especially in the growing C&D waste segment, will further strengthen its market position.
Company snapshot:-
Antony Rubbish Handling Cell Limited is in the business of mechanically sweeping roadways and collecting and transporting rubbish. The company is also involved in waste-to-energy projects, including the design, building, operation, and maintenance of an integrated waste management plant in Kanjurmarg, Mumbai.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
