Over 200 per cent gain in 1 year! Meet the electronic manufacturer growing at 50 per cent CAGR!

PG Electroplast’s stock has rewarded its investors with over 200 per cent returns in the past year

PG Electroplast Limited (PGEL), a leader in electronic manufacturing services and plastic molding, recently unveiled a significant strategic development through its wholly owned subsidiary, PG Technoplast.

With an exclusive agreement with Spiro Mobility, PG Technoplast is set to manufacture electric vehicles (EVs) and lithium-ion batteries. Here's a detailed look at this major milestone and the robust Q2FY25 performance of PG Electroplast.

Q2FY25 Financial Performance

PG Electroplast delivered an exceptional financial performance in Q2FY25, showcasing its consistent growth trajectory.

Key Financial Metrics:

Revenue Growth: Rs 671.3 crore in Q2FY25, a 45.8 per cent YoY increase.

Gross Contribution: Rs 147.74 crore, up 55.4 per cent YoY, with margins improving to 22 per cent.

EBITDA: Rs 60.54 crore, reflecting a growth of 48.2 per cent YoY and a margin expansion to 9 per cent.

Net Profit: Rs 19.47 crore, growing by 57.2 per cent YoY.

H1FY25 Revenue: Rs 1,991.98 crore, a remarkable 75 per cent YoY increase.

Revised FY25 Guidance

PG Electroplast’s management revised its FY25 guidance upward, underlining its confidence in sustained growth:

Operating Revenue: Revised to at least Rs 4,250 crore, plus Rs 600 crore from Goodworth Electronics, totaling Rs 4,850 crore (77 per cent YoY growth).

Net Profit: Expected at Rs 250 crore, marking an 83 per cent YoY increase over FY24.

Capex Plans: Rs 370–Rs 380 crore to expand capacity and infrastructure for FY25.

Strategic Partnership with Spiro Mobility

The agreement with Spiro Mobility positions PG Electroplast at the forefront of India's EV manufacturing landscape:

Scope: Manufacture of electric vehicles and lithium-ion batteries.

Responsibilities: PG Technoplast will handle manufacturing and procurement, while Spiro Mobility oversees R&D, marketing, and distribution.

Vision: Expand the EV space in India with a robust and scalable partnership.

Operational and Segment Highlights

PG Electroplast continues to excel across various segments, driven by robust demand:

Room Air Conditioners (RAC): Revenue at Rs 1,118 crore in H1FY25, growing 143 per cent YoY.

Washing Machines: Recorded a 41 per cent YoY growth.

Subsidiary Contribution: PG Technoplast crossed Rs 1,286.8 crore revenue in H1FY25.

Stock Performance

PG Electroplast’s stock has rewarded its investors with over 200 per cent returns in the past year, reflecting strong market confidence in its growth and strategic direction.

Future Outlook

With increasing opportunities in consumer durables, EVs, and contract manufacturing, PG Electroplast is poised for sustained growth:

Focus Areas: R&D, new product development, and capacity enhancement.

Market Expansion: Leveraging government initiatives like “Make in India” to boost presence in emerging markets.

PG Electroplast is making significant strides, both operationally and strategically, as it enters the EV domain and strengthens its consumer durable segments. With a sharp focus on innovation and capacity expansion, the company is well-positioned to capitalize on market opportunities and deliver substantial shareholder value.

Disclaimer: The article is for informational purpose only and not investment advice.