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    Antony Waste han

    AWHCL
    Utilities·17 Feb 2025
    Management Summary

    Antony Waste Handling Cell Limited reported a strong Q3 FY25, with operating revenue growing 15% YoY to ₹221 crores and EBITDA increasing 18% YoY to ₹59 crores, driven by operational efficiencies and new project contributions. The company secured a significant ₹976 crores contract from Navi Mumbai Municipal Corporation and is actively pursuing large-scale waste-to-energy projects, including a proposed 3000 TPD plant in Kanjurmarg. Management provided guidance for 15-18% revenue growth next year and a 25% CAGR over the next 3-5 years, while maintaining a healthy debt profile.

    Highlights

    5
    • Operating revenue grew 15% YoY to ₹221 crores, reflecting higher volumes, better RDF revenues, increased tipping fees, and greater green energy generation.

    • EBITDA increased 18% YoY to ₹59 crores, with EBITDA margin expanding 120 bps to 24%, driven by operational efficiency and strategic initiatives.

    • Collection and transportation business achieved an impressive 18% YoY revenue growth, reaching ₹163 crores.

    • Processing business grew 9% to ₹58 crores, supported by power sales from PCMC WTE, initial CIDCO bio-mining contribution, and C&D operations.

    • Awarded a ₹976 crores contract by Navi Mumbai Municipal Corporation for Collection and Transportation Services, with revenue expected to ramp up by end of Q1 FY26.

    What Changed2

    vs Q4 FY25

    Guidance items6 → 11 (+5)Risks discussed3 → 4 (+1)

    Key financials

    Single quarter

    09 metrics
    1. 01Operating Revenue₹221 Cr+15%YoY
    2. 02Total Operating Revenue (incl. recyclables/RDF)₹243 Cr+12%YoY
    3. 03EBITDA₹59 Cr+18%YoY
    4. 04EBITDA Margin24%
    5. 05PAT₹18 Cr+16%YoY

    Segment breakdown

    MSW C&TProcessingContracts and other sources
    Revenue Composition (Q3 FY25)62%24%14%
    Revenue Composition (Q3 FY24)65%23%11%
    Heatmap· 3 shared metrics

    Order Book

    high confidence

    Total Value

    ₹ 976 crores

    as of 2024-12-31

    quantified

    Inflow this qtr

    ₹ 976 crores

    Execution

    Revenue from this contract will start in a phase manner with full ramp up being expected towards end of Q1 FY26.

    Pipeline

    other

    New Navi Mumbai C&T tender (₹900+ crores over 9 years), Kanjurmarg WTE plant proposal (3000 TPD capacity)

    "The company has been awarded a significant new contract and is actively pursuing other large-scale projects, including a major waste-to-energy plant, which will further strengthen its portfolio."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹78 crores

    Debt

    Gross ₹431 crores · Net ₹366 crores

    Cost 9.6%

    Liquidity

    Cash ₹65 crores

    Guidance & targets

    11
    CategoryTargetPriority
    Revenue
    Revenue Growth
    15%-18%
    High
    Revenue
    Revenue CAGR
    25%
    High
    EBITDA Margin
    EBITDA Margin
    in line with first 9 months
    High
    Debt
    Debt-free status
    debt free
    High
    Project Revenue
    C&D Plant Topline Revenue
    ₹25 crores
    High
    Project Revenue
    Navi Mumbai C&T (new tender) Annual Revenue
    ₹100 crores
    High
    Project Revenue
    CIDCO Bio-mining Topline Revenue
    ₹45 crores
    High
    Project Capacity
    Kanjurmarg WTE Plant Capacity
    3000 tons per day
    High
    Project Timeline
    Kanjurmarg WTE Plant Construction Timeline
    2-3 years
    High
    Project Timeline
    Tire Recycling Commercialization
    6-9 months
    High
    Capex
    Kanjurmarg WTE Plant Capex
    ₹800-₹1,000 crores
    High

    Clarity on EPR credits

    next quarter
    CurrentEarly days, policy evolving
    TargetMore clarity on credits received and market strategy

    Why it matters

    EPR credits represent a new revenue stream, and clarity on their value and market will impact future earnings.

    We will update you maybe in the next quarter when there is more clarity in terms of how many credits we have got.

    How to verify

    guidance_and_targets[category='Revenue'][metric='EPR segment revenue scale']

    Risks & concerns

    4
    RiskSeverity

    High outstanding receivables from municipal clients

    Total current outstanding receivables are ₹225 crores, including ₹52 crores outstanding for more than 365 days (retention cost of tender conditions) and ₹38 crores of plain outstanding debtor over 365 days.Analyst acknowledged

    medium

    Regulatory and policy evolution for EPR credits

    Clarity on EPR credits and policy evolution is still in early stages, with the company awaiting CPCB approval and market development.Management acknowledged

    medium

    Delays in MIDC land purchase for recycling projects

    Decision on MIDC land purchase for non-municipal recycling businesses is taking time due to change of guard at MIDC.Management acknowledged

    medium

    Large CAPEX and debt for Kanjurmarg WTE project

    Proposed Kanjurmarg WTE project requires ₹800-₹1,000 crores CAPEX, which will increase debt, but management asserts it will remain within serviceable limits with a net debt to equity of 0.5x.Analyst downplayed

    low

    Q&A highlights

    7

    “We will at least have clarity in terms of how many credits we have got and then we will go in the market. These are still early days for the EPR from the plastics. So let us explore, we are also expecting the policy and the business to evolve over a period of time.”

    Analyst sought specific revenue scale for the new EPR segment, but management indicated it's too early for concrete numbers, awaiting policy clarity and credit allocation.

    asked by Prashant Kothari

    3 min read6 chapters

    Detailed Narrative

    01

    Q3 FY25 Financial Performance Highlights

    Antony Waste Handling Cell Limited reported a strong Q3 FY25, achieving a record high quarterly operating revenue of ₹221 crores, marking a 15% year-over-year growth. Including income from recyclables and RDF, total operating revenue reached ₹243 crores, a 12% YoY increase. EBITDA stood at ₹59 crores, reflecting an 18% growth with an EBITDA margin of 24%, expanding by 120 basis points compared to the same quarter last year. The company's PAT for the quarter was ₹18 crores, a 16% growth over Q3 FY24.

    02

    Operational Performance and Business Segment Growth

    The collection and transportation business demonstrated robust growth with an 18% YoY revenue increase, reaching ₹163 crores. The processing business also saw a 9% growth, recording ₹58 crores in revenue, primarily driven by power sales from the PCMC waste-to-energy plant, initial contributions from the CIDCO bio-mining project, and commercial start of C&D operations. The PCMC WTE plant maintained strong operational performance with an impressive Plant Load Factor (PLF) of 77% in Q3 FY25, generating over 23 million green units.

    03

    New Project Contributions and Pipeline

    The company was awarded a significant contract worth ₹976 crores by the Navi Mumbai Municipal Corporation for Collection and Transportation Services, with revenue expected to ramp up by the end of Q1 FY26. The newly operational Construction & Demolition (C&D) plant is expected to contribute approximately ₹25 crores in topline revenue annually. Additionally, the CIDCO bio-mining project is projected to add around ₹45 crores to the topline next year. Discussions are ongoing for a large-scale Waste-to-Energy plant in Kanjurmarg with a proposed capacity of 3000 tons per day, requiring an estimated CAPEX of ₹800-₹1,000 crores.

    04

    Debt Management and Financial Position

    As of December 24, the group's gross debt stood at ₹431 crores, with net debt at approximately ₹366 crores. The net debt to equity ratio was 0.5x, and the weighted cost of debt was 9.6%. The company received ₹45 crores out of ₹50 crores in VGF funding for the PCMC project, which was used for debt repayment, with the balance ₹5 crores expected by September 2025. Management indicated that even with the substantial CAPEX for new projects like Kanjurmarg WTE, the debt would remain within serviceable limits.

    05

    Future Outlook and Strategic Initiatives

    Antony Waste projects a revenue growth of 15-18% for the next year and a 25% CAGR over the next 3-5 years, with EBITDA margins expected to remain in line with the first nine months of FY25. The company is actively pursuing opportunities in the EPR segment for plastics, with an application filed with CPCB, and is evaluating the technical feasibility of converting plastic to oil. Diversification efforts also include the production of M-Sand from C&D waste, which has seen good traction with sales of 3,500 tons in the first few months.

    06

    Sustainability and ESG Initiatives

    The company processed over 20,000 tons of Construction and Demolition Waste at its Dahisar plant, with an impressive 96% recycled into valuable resources. On the ESG front, Scope 1 and Scope 2 emissions for the first 9 months of FY25 totaled approximately 19,545 tons and 2,213 tons of CO2e respectively, with 10,172 tons of emissions avoided. The company also highlighted a 'zero waste event' initiative during the Coldplay event in Navi Mumbai, where 14,000 kgs of waste were collected and processed.

    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.