3300 Per Cent Returns: Multibagger Recycling Company Reports 30 Per Cent PAT Growth, Sales Up 32 Per Cent
Company's consolidated net profit rose by 29.30 per cent YoY, reaching Rs 77.93 crore in Q3 FY25, compared to Rs 60.3 crore in the same quarter of the previous fiscal year.
Gravita India Limited, a leading recycling company, delivered strong performance in Q3 FY25, reporting robust growth in its profit and revenue. The company also highlighted significant strategic advancements, including the successful completion of a major fundraising initiative.
Financial Performance
Gravita India’s consolidated net profit rose by 29.30 per cent YoY, reaching Rs 77.93 crore in Q3 FY25, compared to Rs 60.3 crore in the same quarter of the previous fiscal year. The company’s revenue from operations increased by 31.49 per cent YoY, standing at Rs 996.42 crore in Q3 FY25 versus Rs 757 crore in Q3 FY24.
Total expenses grew by 35.2 per cent during the quarter, amounting to Rs 915.69 crore, with the cost of materials consumed rising by 29.3 per cent YoY to Rs 798.94 crore.
Gravita’s EBITDA rose marginally by 0.48 per cent, reaching Rs 80.7 crore in Q3 FY25, compared to Rs 80.3 crore in the same quarter last year. However, the EBITDA margin declined to 8.1 per cent, from 10.6 per cent in Q3 FY24.
Strategic Initiatives
Yogesh Malhotra, Whole-Time Director and CEO of Gravita India, stated, “Gravita has delivered exceptional performance in the first nine months of FY25 and is progressing strongly towards its Vision 2028.”
Key goals of Vision 2028 include:
- Expanding capacities in existing and new verticals, targeting a compound annual growth rate (CAGR) of 25 per cent+ in volume and 35 per cent+ in profitability.
- Achieving a return on invested capital (ROIC) of 25 per cent+.
- Increasing the contribution of value-added products to over 50 per cent of the total portfolio.
- Growing the non-lead business to account for 30 per cent+ of revenue.
The company successfully raised Rs 1,000 crore through a Qualified Institutional Placement (QIP) to drive its vision of becoming a global leader and one of the most valuable companies in the recycling industry.
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About the Company
Established in 1992, Gravita India Limited is one of India’s largest lead producers and a leader in the recycling industry. The company operates across four specialized verticals:
- Lead Recycling (flagship business)
- Aluminum Recycling
- Plastic Recycling
- Turnkey Projects
Gravita also specializes in recycling used batteries, cable scrap, aluminum scrap, plastic scrap, and other materials.
Stock Price Performance
Gravita India’s stock has delivered an impressive 118.6 per cent return over the past year, significantly outperforming the Nifty, which gained 9.43 per cent during the same period. Over the past five years, the company has provided multibagger returns of 3300 per cent, with a market capitalization of Rs 16,046 crore, solidifying its position as a high-performing player in the market.
Disclaimer: This article is for informational purposes only and not investment advice.