The Anup Engineering Ltd (NSE:ANUP) Q2 2025 Earnings Call Highlights: Record Revenue Growth and ...

In This Article:

  • Standalone Revenue (Q2): ?187.9 crores, 34% growth quarter-on-quarter.

  • Standalone EBITDA (Q2): ?42.9 crores, 22.9% margin, 37% growth quarter-on-quarter.

  • Standalone PAT (Q2): ?32.3 crores, 17.2% margin, 48% growth quarter-on-quarter.

  • Consolidated Revenue (Q2): ?193.1 crores, 38% growth quarter-on-quarter.

  • Consolidated EBITDA (Q2): ?43.3 crores, 22.4% margin, 38% growth quarter-on-quarter.

  • Consolidated PAT (Q2): ?32.5 crores, 16.8% margin, 50% growth quarter-on-quarter.

  • H1 Revenue: ?339.1 crores, 28% growth year-on-year.

  • H1 EBITDA: ?76.3 crores, 28% growth year-on-year.

  • H1 PAT: ?56.6 crores, 40% growth year-on-year.

  • Working Capital: Healthy at 4.1 turns.

  • Exports (H1): 52% of total revenue.

  • Sectorial Revenue (Q2): Oil & Gas and Petrochemicals 61%, Hydrogen 30%, Fertilizers and Others 9%.

  • Product Revenue Share (Q2): Heat Exchangers 72%, Vessels, Reactors, and Columns 24%, Others 4%.

  • Pending Order Book (End of September): ?882 crores, 68% exports.

  • Current Pending Order Book: ?932 crores.

  • Renewable Energy Usage: 60% of power requirement at Ahmedabad plant from renewable sources, expected to increase to 75%.

Release Date: October 28, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • The Anup Engineering Ltd (NSE:ANUP) reported a 34% quarter-on-quarter revenue growth, marking its best-ever quarter on revenue.

  • The company achieved a 48% quarter-on-quarter growth in profit after tax (PAT), demonstrating strong financial performance.

  • Exports accounted for 52% of the revenue, indicating a successful expansion into international markets.

  • The company has signed a collaboration agreement with Graham Corporation USA, becoming the exclusive manufacturer for their global projects.

  • The pending order book stands at 932 crores, providing strong visibility and confidence for future growth.

Negative Points

  • The company's receivables have increased significantly, raising concerns about cash flow management.

  • There is aggressive market competition, particularly in the domestic sector, which could impact future margins.

  • The company faces geopolitical risks in its export markets, which could affect order execution.

  • Capacity utilization at the Ahmedabad facility is nearly maxed out, limiting immediate growth potential without further expansion.

  • The company does not have price variation clauses in its contracts, which could expose it to raw material price fluctuations.

Q & A Highlights

Q: Can you provide insights into the growth projections for FY27 and FY28, and details about the collaboration with Graham Corporation? A: We aim for a 25-30% growth year-on-year over the next 2-3 years. This will be achieved by expanding capacity and strategic collaborations. The Graham Corporation collaboration makes us their exclusive manufacturer, potentially adding 30-40 crores in revenue for FY26, with opportunities for international markets as well. - Reginaldo Dsouza, Managing Director and CEO