Any current/future new fundraising through debt or equity?

Incremental debt will be borrowed only after bagging new contracts that generate future revenue; no existing plan to raise debt without contract wins. For Construction & Demolition (C&D) contracts, debt can be as high as 90% of capital employed due to easy vehicle financing. Waste processing projects typically require around 70% debt and 30% equity, often supported by capital grants and viability gap funding. Recent increase in long-term borrowings (from Rs.102 crores in FY22 to Rs.307 crores in FY24) mainly due to the 14 MW Waste-to-Energy project in Pimpri-Chinchwad. Company aims to

Any current/future capex/capital investment/strategic investment?

Current year capex is planned at around Rs.20 crores, plus Rs.5-7 crores for tire and car recycling projects. Company decided to buy land (instead of long-term lease) in MIDC Industrial Park near Mumbai for an integrated site for vehicle scrapping and tire recycling. Deal expected to close soon. Investment for vehicle scrapping and tire projects is estimated at Rs.20-28 crores, with an additional Rs.8 crores possible for scaling up the entity. Incremental debt will be raised only after securing new revenue-generating contracts. Debt can be as high as 90% of capital for C&D (Collection &

Future growth expectations in sales/revenue/volumes?

Expected core revenue growth of 14% to 18% in FY'25, excluding compost and RDF sales (Page 8). Incremental revenue from new contracts like Panvel, CIDCO biomining, and Construction & Debris (C&D) business contributing to growth (Page 12). Six months of revenue anticipated from the new C&D project, with annualized revenue around Rs.30 crores (Page 8). Market for Municipal Solid Waste (MSW) and related segments expected to grow significantly due to urbanization, real estate development, and increased focus on waste processing (Pages 15-16). Waste-to-Energy projects gaining traction, further expa

Future growth expectations in earnings/operating earnings/profits/EPS?

Core revenue growth guidance for FY'25 is 14% to 18%, excluding compost and RDF sales, which are expected to increase sharply in H2. The company anticipates around 18% growth on the top line with EBITDA margins maintained at 23%-24%. Incremental revenue growth expected from projects in Panvel, CIDCO biomining, C&D business, and a full year of the Waste-to-Energy (WTE) project. Increased operational efficiency and higher tipping fees are supporting revenue growth. Interest and depreciation costs have risen due to new capex (e.g., WTE project), which may limit bottom-line growth in the n

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Antony Waste Handling Cell LtdQ2 FY24Other Utilities

Antony Waste Handling Cell Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹472P/E: 22.3Market Cap: ₹1.4K CrSector: Other Utilities

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Expected core revenue growth of 14% to 18% in FY'25, excluding compost and RDF sales (Page 8).
→Incremental revenue from new contracts like Panvel, CIDCO biomining, and Construction & Debris (C&D) business contributing to growth (Page 12).
→Six months of revenue anticipated from the new C&D project, with annualized revenue around Rs.30 crores (Page 8).
→Market for Municipal Solid Waste (MSW) and related segments expected to grow significantly due to urbanization, real estate development, and increased focus on waste processing (Pages 15-16).
→Waste-to-Energy projects gaining traction, further expanding processing market size (Page 16).
→Additional large Collection & Transportation contracts likely to close within the current quarter, adding to revenue (Page 6).
→Overall, a combination of new contract wins and expanded market segments expected to drive sharper growth than the past decade (Pages 15-16).

Margin guidance

Category 3

→Core revenue growth guidance for FY'25 is 14% to 18%, excluding compost and RDF sales, which are expected to increase sharply in H2.
→The company anticipates around 18% growth on the top line with EBITDA margins maintained at 23%-24%.
→Incremental revenue growth expected from projects in Panvel, CIDCO biomining, C&D business, and a full year of the Waste-to-Energy (WTE) project.
→Increased operational efficiency and higher tipping fees are supporting revenue growth.
→Interest and depreciation costs have risen due to new capex (e.g., WTE project), which may limit bottom-line growth in the near term despite EBITDA growth.
→Debt is expected to be managed prudently, with incremental borrowing only after securing new contracts.
→Market segments like MSW collection & transportation, processing, and C&D are expanding, offering long-term earnings growth potential.
→Overall outlook supports steady EBITDA and operating profit growth with cautious optimism on EPS due to higher finance costs.

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Fundraise plans

Yes

→Incremental debt will be borrowed only after bagging new contracts that generate future revenue; no existing plan to raise debt without contract wins.
→For Construction & Demolition (C&D) contracts, debt can be as high as 90% of capital employed due to easy vehicle financing.
→Waste processing projects typically require around 70% debt and 30% equity, often supported by capital grants and viability gap funding.
→Recent increase in long-term borrowings (from Rs.102 crores in FY22 to Rs.307 crores in FY24) mainly due to the 14 MW Waste-to-Energy project in Pimpri-Chinchwad.
→Company aims to be debt-free in the next four years if no further contracts are bagged and cash flows remain stable.
→No specific mention of imminent equity fundraising; focus is on managing debt only after securing projects.

Order book

- The Chennai processing project bid submission is expected later in August 2024; the project is still in the bidding stage. - There are several ongoing tenders, including: - Construction & Transportation (C&T) tenders - Biomining tenders - A large C&T contract in the Mumbai Metropolitan Region (MMR) has been submitted, with results expected within the current quarter. - Other C&T tenders in Thane and Chennai are also in the pipeline. - New contract wins will dictate incremental debt borrowing, with debt only incurred after contracts are awarded. - No finalized order book figures were disclosed, but revenue growth visibility exists from contracts in Panvel, CIDCO biomining, and C&D business. In summary, the company is actively bidding for multiple contracts across C&T, biomining, and processing, with expected closures and order inflows in the near term.

Capex plans

Yes

→Current year capex is planned at around Rs.20 crores, plus Rs.5-7 crores for tire and car recycling projects.
→Company decided to buy land (instead of long-term lease) in MIDC Industrial Park near Mumbai for an integrated site for vehicle scrapping and tire recycling. Deal expected to close soon.
→Investment for vehicle scrapping and tire projects is estimated at Rs.20-28 crores, with an additional Rs.8 crores possible for scaling up the entity.
→Incremental debt will be raised only after securing new revenue-generating contracts. Debt can be as high as 90% of capital for C&D (Collection & Debris) contracts and around 70% for large-scale waste processing projects, supported by capital grants and viability gap funding.
→No upfront asset procurement before contract wins; borrowings and investments follow contract awards to maintain asset-light models where possible.

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