InvestorQ : How were the quarterly results of Praj Industries for September 2022 quarter?
Rutuja Nigam made post

How were the quarterly results of Praj Industries for September 2022 quarter?

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1 month ago
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For the second quarter of FY23 ended September 2022, Praj Industries reported 64.64% growth in sales on a consolidated basis at Rs877 crore. Praj operates in the field of process and project engineering and the strong demand in recent times from the ethanol industry led to sequential growth in revenues of over 20%. The company predominantly caters to the alternate energy segment and has been one of the biggest gainers of the ethanol rush in recent times. With ethanol capacities being expanded by the sugar companies to meet the aggressive ethanol blending target, numbers are great. Here is a gist of numbers.

Praj Industries

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 876.58

₹ 532.41

64.64%

₹ 729.87

20.10%

Net Profit (Rs cr)

₹ 48.13

₹ 33.33

44.40%

₹ 41.26

16.65%

Diluted EPS (Rs)

₹ 2.62

₹ 1.82

₹ 2.25

Net Margins

5.49%

6.26%

5.65%

Let us now turn to the profit performance of the company. PAT was up 44.4% at Rs48.13 crore and even on a sequential basis, the profits were up 16.65%. The profit growth was basically a function of robust growth in demand. The reason the profit growth was slower than sales growth was largely on account of a sharp spike in raw material costs and other expenses in the quarter. Net margins were 5.49% for Q2FY23 as against 6.26% in the year ago quarter of September 2021 and 5.65% in the sequential June 2022 quarter. Due to working capital tightness, there was a spike in the trade receivables, which led to negative net cash generated from operations in the first half of the fiscal year.

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