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    APEXECO

    APEXECO
    Utilities·30 May 2025
    Management Summary

    Apex Ecotech Limited delivered a strong financial performance in H2 FY25 and for the full FY25, driven by increased project completions and improved margins. The company highlighted its strategic focus on advanced water treatment technologies like ZLD and a robust order book exceeding INR 55 crores for FY26. While receivables saw a temporary spike, management assured it was due to billing timing and is being addressed, with a commitment to maintaining growth and potentially adopting quarterly updates.

    Highlights

    5

    • H2 FY25 Revenue surged to INR 4925.44 lakhs (₹49.25 crores), reflecting a robust increase of 126.97% over H1 FY25.

    • H2 FY25 EBITDA rose sharply to INR 8927.78 lakhs (₹89.28 crores), up 331.85%, showcasing strong operating leverage and improved project margins.

    • H2 FY25 Profit After Tax (PAT) surged to INR 700.83 lakhs (₹7.01 crores), a 351.42% increase over the previous year.

    • For the full year FY25, Apex Ecotech recorded a revenue of INR 7095.53 lakhs (₹70.96 crores), representing a year-on-year growth of 33.67%.

    • The company started FY26 with an order book exceeding INR 55 crores, positioning it for accelerated execution and consistent growth.

    Concerns

    2

    • Receivables spiked in H2 FY25 due to high billing in February and March, increasing from INR 21 crores to almost INR 50 crores.

    • Analyst concern regarding the general perception of SME companies due to SEBI actions (SMA and PCAS).

    What Changed2

    vs Q2 FY26

    Guidance items5 → 2 (-3)Risks discussed0 → 2 (+2)
    Key financials

    Metrics

    8

    Periods

    2

    Headline

    4
    • H2 FY25 Revenue
      ₹49.254 Cr
      QoQ+127.0%
    • H2 FY25 EBITDA
      ₹89.278 Cr
      QoQ+3.3%
    • H2 FY25 PAT
      ₹7.008 Cr
      QoQ+3.5%
    • H2 FY25 EPS
      ₹6.31
      QoQ+2.9%

    FY25

    4
    • Revenue
      ₹70.955 Cr
      YoY+33.7%
    • EBITDA
      ₹11.057 Cr
      YoY+24.5%
    • PAT
      ₹8.561 Cr
      YoY+29.1%
    • EPS
      ₹7.91
      YoY+15%

    Order Book

    high confidence

    Total Value

    ₹ 55 crores

    as of 2025-04-01

    quantified
    161.9% YoY

    Execution

    All orders will be executed within the current financial year, with project gestation periods typically ranging from six to ten months.

    Pipeline

    other

    6-7 projects being pursued

    "The company has a much better and steadier order book for FY26, which is expected to be executed within the year."

    Source:
    Prepared remarks

    Guidance & targets

    2
    CategoryTargetPriority
    Revenue
    Revenue Growth Rate
    maintain
    		Medium
    Revenue
    H1/H2 Revenue Distribution
    less skewed
    		Medium

    Receivables normalization

    next quarter (Q1 FY26)
    CurrentINR 50 crores (from INR 21 crores) as of March 2025, with INR 8 crores from L&T expected soon.
    TargetReduction in receivables, closer to historical average of 45-60 days.

    Why it matters

    High receivables can impact cash flow and balance sheet health, and management committed to addressing this.

    We have, I mean, almost I would say in percentages, maybe 30% we have received and in the coming week, one of the larger payments was from L&T, which was to the tune of almost INR8 crores. That should be coming next week.

    How to verify

    capital_allocation.liquidity

    Risks & concerns

    2
    RiskSeverity

    Spike in receivables and potential for bad debts/cash flow disruption

    Receivables increased significantly in H2 FY25 due to high billing in Feb/March, leading to analyst concern about bad debts or cash flow issues, though management expects resolution. — Analyst downplayed

    medium

    Perception of SME companies due to SEBI actions (SMA, PCAS)

    Analyst expressed concern that SEBI's actions regarding SME companies create doubt among investors, impacting the sector, which management acknowledged as a broader issue. — Analyst acknowledged

    low

    Q&A highlights

    8

    “So, yes, there was a lot of billing or invoicing during the six months, specifically in the month of February and March. And therefore, the receivables were high. But however, I mean, you know, we are trying to even out in such a way that it does not get into spikes.”

    Addresses a key balance sheet item (receivables) that saw a significant increase, providing context and management's plan to normalize it.

    asked by Agastya Dave

    2 min read6 chapters

    Detailed Narrative

    01

    Strong H2 and Full Year FY25 Financial Performance

    Apex Ecotech Limited reported robust financial results for H2 FY25, with revenue reaching INR 4925.44 lakhs (₹49.25 crores), a 126.97% increase over H1 FY25. EBITDA surged 331.85% to INR 8927.78 lakhs (₹89.28 crores), and PAT grew 351.42% to INR 700.83 lakhs (₹7.01 crores). For the full FY25, revenue stood at INR 7095.53 lakhs (₹70.96 crores), marking a 33.67% year-on-year growth, while PAT increased 29.11% to INR 856.08 lakhs (₹8.56 crores).

    02

    Strategic Focus on Advanced Water Treatment Technologies

    The company emphasized its vision for sustainable water management, leveraging advanced technologies like Zero Liquid Discharge (ZLD), Membrane Bioreactor Systems (MBR), and electrolysis. Management highlighted ZLD as a niche, high-margin segment, crucial for environmental stewardship and water recycling, with a focus on recovering up to 98% of water. These technology-led solutions are expected to drive efficiency and profitability by reducing capex and opex.

    03

    Order Book and Execution Visibility

    Apex Ecotech commenced FY26 with an order book exceeding INR 55 crores, a significant increase from INR 21 crores in the previous year. Management stated that the majority of this order book is expected to be executed within FY26, with project gestation periods typically ranging from six to ten months. The company aims for a steadier order inflow and execution throughout the year, reducing the skew observed in prior periods and ensuring consistent growth.

    04

    Receivables Management and Client Profile

    A temporary spike in receivables was noted in H2 FY25, primarily due to high invoicing in February and March, increasing from INR 21 crores to almost INR 50 crores. Management clarified that this was a snapshot effect and that efforts are underway to normalize receivables, with a significant payment of INR 8 crores from L&T expected soon. The company primarily works with reputable, established clients, ensuring diligence in payment collection and minimizing bad debt risk.

    05

    Operational Strategy and Market Differentiation

    Apex Ecotech differentiates itself through in-house engineering capabilities, efficient execution of MEP-oriented projects (6-10 month timelines vs. longer civil municipal projects), and strategic alliances like with Veolia. The company is expanding its international presence in Bangladesh and Vietnam and aims to scale up its operations by focusing on larger jobs and maintaining its historical growth rate, while also investing in automation and digital project monitoring.

    06

    Investor Communication and Transparency

    In response to an analyst's request, management expressed willingness to consider providing quarterly earnings updates from subsequent quarters, acknowledging the importance of transparency for SME companies. This move would enhance investor communication beyond the current half-yearly reporting, providing more frequent insights into the company's performance and strategic progress.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.