Any current/future new fundraising through debt or equity?

As of the information provided up to August 2024, Eco Recycling Limited has not indicated any immediate plans for fundraising through debt or equity. The company mentioned accumulating cash from internal accruals and investing Rs. 50 crores in plant, machinery, and land, indicating a preference for internal funding. Future capacity expansion plans will be evaluated around September 2025 based on performance, after which any requirement for further investment will be assessed. The company plans to accumulate cash till then and consider additional investment opportunities for expanding e-waste r

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

Eco Recycling Limited has recently invested Rs. 50 crores in plant, machinery, and land/building for its second facility in Vasai East, Mumbai. Future capital investments and capacity expansions will be assessed around September 2025 based on performance by March 2025 and half of the next year. Potential future expansions may focus on e-waste recycling, especially PCB recycling and lithium-ion battery recycling. The government’s Rs. 15,000 crores MSME fund announcement is expected to reduce Eco Recycling’s next expansion investment from Rs. 50 crores to approximately Rs. 37.5 crores, thus impr

Future growth expectations in sales/revenue/volumes?

Eco Recycling Limited expects substantial volume growth, targeting 100,000 metric tons capacity within 5-7 years. Revenue guidance for FY25 is around Rs. 100 crores, requiring approximately Rs. 90 crores growth in next 3 quarters. Projected recycling volume for FY25 is about 12,000 metric tons with an envisaged profit of Rs. 30-35 crores, focusing on profitability over top line. Capacity expansions are aligned to demand growth, with ₹50 crores invested in the second facility that started early June 2024. Government initiatives like the Rs. 15,000 crores MSME fund for environment-friend

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

Eco Recycling Limited expects significant volume growth and capacity expansion, targeting up to 100,000 metric tons in 5-7 years. The company aims to achieve around 12,000 metric tons capacity utilization in the near term with profits of Rs. 30-35 crores. Margins are anticipated to remain sustainable due to increasing compliance demands and the essential nature of environmental services (EPR compliance). The government’s Rs. 15,000 crore subsidy announcement for environment-friendly practices is expected to reduce CapEx and improve margins. FY25 revenue guidance is around Rs. 100 crores with c

Current/ Expected Orderbook/ Pending Orders?

The transcript does not explicitly mention the current or expected orderbook or pending orders in specific numbers. However, B K Soni indicates confidence in capacity expansion and demand growth, expecting to achieve 100,000 metric tons capacity within 5-7 years. New client onboarding is progressing well, contributing over Rs. 3 crores value addition in the quarter. There is optimism about ramp-ups from existing clients, driven by increased environmental compliance enforcement by CPCB. EPR fees collection is handled gradually for sustainability and better realization, implying a steady inflow

IN US

Sale is live|00:00:00left today

Eco Recycling LtdQ2 FY24Other Utilities

Eco Recycling Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹433P/E: 39.0Market Cap: ₹902 CrSector: Other Utilities

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

2 of 3 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→Eco Recycling Limited expects substantial volume growth, targeting 100,000 metric tons capacity within 5-7 years.
→Revenue guidance for FY25 is around Rs. 100 crores, requiring approximately Rs. 90 crores growth in next 3 quarters.
→Projected recycling volume for FY25 is about 12,000 metric tons with an envisaged profit of Rs. 30-35 crores, focusing on profitability over top line.
→Capacity expansions are aligned to demand growth, with ₹50 crores invested in the second facility that started early June 2024.
→Government initiatives like the Rs. 15,000 crores MSME fund for environment-friendly practices are expected to boost industry investments by Rs. 60,000 crores, enhancing margins.
→Increased regulatory enforcement (e.g., stricter CPCB rules) will drive higher formal sector material inflows, supporting volume ramp-up.
→International collaborations and attendance at global recycling conferences help access new technologies and business opportunities.

Margin guidance

Category 3

→Eco Recycling Limited expects significant volume growth and capacity expansion, targeting up to 100,000 metric tons in 5-7 years.
→The company aims to achieve around 12,000 metric tons capacity utilization in the near term with profits of Rs. 30-35 crores.
→Margins are anticipated to remain sustainable due to increasing compliance demands and the essential nature of environmental services (EPR compliance).
→The government’s Rs. 15,000 crore subsidy announcement for environment-friendly practices is expected to reduce CapEx and improve margins.
→FY25 revenue guidance is around Rs. 100 crores with continued margin focus.
→EPS has grown strongly (73.36% increase to Rs. 4.23 in Q1 FY25) with expectations of continued growth driven by volume and margin improvements.
→The company prioritizes profit growth and shareholder value over top-line expansion alone.

3 more insights locked — sign up free to unlock

Fundraise plans

→As of the information provided up to August 2024, Eco Recycling Limited has not indicated any immediate plans for fundraising through debt or equity.
→The company mentioned accumulating cash from internal accruals and investing Rs. 50 crores in plant, machinery, and land, indicating a preference for internal funding.
→Future capacity expansion plans will be evaluated around September 2025 based on performance, after which any requirement for further investment will be assessed.
→The company plans to accumulate cash till then and consider additional investment opportunities for expanding e-waste recycling and lithium-ion battery recycling capacities.
→No explicit mention of new debt or equity fundraising rounds has been made in the latest discussions.

Order book

→The transcript does not explicitly mention the current or expected orderbook or pending orders in specific numbers.
→However, B K Soni indicates confidence in capacity expansion and demand growth, expecting to achieve 100,000 metric tons capacity within 5-7 years.
→New client onboarding is progressing well, contributing over Rs. 3 crores value addition in the quarter.
→There is optimism about ramp-ups from existing clients, driven by increased environmental compliance enforcement by CPCB.
→EPR fees collection is handled gradually for sustainability and better realization, implying a steady inflow of orders related to compliance services.
→Overall, the company is witnessing growing demand aligned with environmental regulations, ensuring ongoing order flow for its service offerings.

Capex plans

Yes

→Eco Recycling Limited has recently invested Rs. 50 crores in plant, machinery, and land/building for its second facility in Vasai East, Mumbai.
→Future capital investments and capacity expansions will be assessed around September 2025 based on performance by March 2025 and half of the next year.
→Potential future expansions may focus on e-waste recycling, especially PCB recycling and lithium-ion battery recycling.
→The government’s Rs. 15,000 crores MSME fund announcement is expected to reduce Eco Recycling’s next expansion investment from Rs. 50 crores to approximately Rs. 37.5 crores, thus improving margins.
→The company plans to continue capacity expansions proportionate to demand growth while maintaining margin sustainability.
→No current plans to set up facilities outside Mumbai, as centralized facilities are preferred for cost efficiency and security.

How does Eco Recycling Ltd rank vs peers in Other Utilities?

Pro feature

1Eco Recycling Ltd

Rev 1Mar 3

See full Other Utilities sector rankings

Want more stocks like Eco Recycling Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio