Hi-Green Carbon LtdQ3 FY25Other Utilities

Hi-Green Carbon Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Revenue guidance

Category 2

→Expect to process around 38,000 to 40,000 metric tons of waste tire in the current year, up from 24,000 metric tons last year.
→Anticipate revenue of approximately ₹130 to ₹140 crores with the third plant starting in the last quarter.
→With all three plants fully operational, target revenue exceeding ₹200 crores by FY27.
→Ramp-up period for new plants is around 3 to 4 months to reach optimal capacity (~75–80%).
→Strategy includes adding one new plant per year; currently evaluating locations for the next expansion.
→Internal accruals and bank support to fund expansion; possible state government incentives.
→Focus on improving efficiency and economies of scale for better margins as capacity utilization improves.

Category 1

→Target to achieve beyond ₹200 crore revenue by FY27 once all three plants are fully operational.
→Expect to process around 38,000 to 40,000 metric tons of waste tire in the current year, up from 24,000 metric tons last year.
→Anticipate reaching close to 20% operating profit margin (OPM) for the entire year, recovering from recent margin pressures.
→Ramp-up time for new plants is approximately 3-4 months; the third plant expected to start commercial production by mid-January.
→Internal accruals and state government incentives planned to fund expansion; pursuing one new plant per year.
→Consolidation of Radhe Renewables’ business into Hi-Green expected to add revenue without additional capex, improving profitability.
→Expect margin improvement from utilizing by-products (syngas for power) and better capacity utilization across plants.
→EPR credits are not expected to significantly impact profits or revenue.

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Yes

→Post ramp-up of the third plant, the company expects to have sufficient internal accruals to support expansion.
→Existing bankers are available to support funding needs.
→State government incentives are accessible for funding new plants.
→For larger expansion beyond internal accruals, the company plans to seek external support from interested investors or financial partners.
→No explicit mention of immediate plans for new debt or equity fundraising was made, but provisions exist to raise funds if larger expansion opportunities arise.

→The transcript does not explicitly mention the exact current or expected order book value or pending orders.
→However, it is noted that for Radhe Renewables' existing pending orders already signed, and any new orders related to gasification or the old business, Hi-Green will manufacture and execute these as part of the consolidation of Radhe Renewables into Hi-Green.
→Hi-Green grants a 1% commission to Radhe Renewables for executing these orders.
→There is ongoing customer onboarding for rCB products, with 6-7 new customers onboarded in the Maharashtra plant recently, indicating active order inflow.
→The company is also actively pursuing certifications and approvals to expand its customer base and order execution capacity.
→No specific numeric order book details or pipeline size is provided in the transcript.

Yes

→The company plans to expand by adding one new plant per year, with two to three locations identified but still under evaluation for feasibility (Page 12, 13, 20).
→The third plant in Madhya Pradesh is nearing completion (90-95% done) and expected to start operations by mid-January (Pages 3, 18).
→Future plant setup cost is around ₹50 crore, significantly lower than global costs (Page 7).
→Internal accruals and bank support are planned to fund expansions, with state government incentives also expected (Page 20).
→The business of Radhe Renewables was consolidated into Hi-Green at a nominal value, transferring machinery manufacturing without incurring capex for Hi-Green, supporting expansion without heavy capital outlay (Pages 10–11, 12).
→Samsara plant modifications aim to increase capacity from 40 to 60–80 metric tons per day (Page 21).
→The company is exploring partnerships for strategic growth and global expansion but details are confidential under NDA (Page 14).

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