Antony Waste Handling Cell Limited — Q3 FY25 earnings call

Call held 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

  • 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.

Key financials

  1. Operating Revenue ₹221 Cr +15%YoY
  2. Total Operating Revenue (incl. recyclables/RDF) ₹243 Cr +12%YoY
  3. EBITDA ₹59 Cr +18%YoY
  4. EBITDA Margin 24%
  5. PAT ₹18 Cr +16%YoY
  6. Gross Debt ₹431 Cr
  7. Net Debt ₹366 Cr
  8. Net Debt to Equity 0.5×
  9. Weighted Cost of Debt 9.6%

What they filed

Q1 FY27: revenue up 5.5%, net profit down 96.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue221 243 243 247 258 +16%262 +8%286 +18%261 +6%
EBITDA43 52 51 55 51 +19%43 −18%57 +12%37 −32%
Net profit15 18 46 23 17 +13%15 −19%37 −20%1 −97%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentMSW C&TProcessingContracts and other sources
Revenue Composition (Q3 FY25)62%24%14%
Revenue Composition (Q3 FY24)65%23%11%

Order book

high confidence

Total value

₹976 Cr

as of 2024-12-31 quantified

Inflow this quarter

₹976 Cr

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

high confidence
  • Capex ₹78 Cr
    in Q2, the guidance for Rs. 78 crores CAPEX in FY25 was given and plan to be debt free was also given in 5 years if there are no new large projects, right. So given the cash flows generated in Q3 and the upcoming project investments, do you still expect to stay on this trajectory?
  • Debt Gross ₹431 Cr · Net ₹366 Cr Cost 9.6%
    • Repayment VGF funding received for PCMC project used for debt repayment. ₹45 Cr
    As of December 24, the group's gross debt stood at Rs. 431 crores and cash and cash equivalents was around Rs. 65 crores reflecting in a net debt of approximately Rs. 366 crores. This indicates the net debt to equity ratio of 0.5x. The group's weighted cost of debt is approximately 9.6% and our DSOS have remained stable during the quarter at 105.
  • Liquidity Cash ₹65 Cr
    As of December 24, the group's gross debt stood at Rs. 431 crores and cash and cash equivalents was around Rs. 65 crores reflecting in a net debt of approximately Rs. 366 crores.

Guidance & targets

Revenue

  • Revenue Growth Revenue · next year · High confidence 15%-18%
    So we would be looking at a growth of around 15%-18% at least for the next year based on the existing contract.

    — Subramanian N. G.

  • Revenue CAGR Revenue · next 3-5 years · High confidence 25%
    That holds on, 25% CAGR revenue growth over the next 3-5 years holds off, but we are for the next year's revenue number.

    — Subramanian N. G.

EBITDA Margin

  • EBITDA Margin EBITDA Margin · next year · High confidence in line with first 9 months
    EBITDA margin should be in line with what we have already achieved in the first 9 months, if not better.

    — Subramanian N. G.

Debt

  • Debt-free status Debt · 4-1/2 years · High confidence debt free
    Company is not going to bag any new contract and the existing contracts are going to be executed, then this Company would be debt free in 4-1/2 years period of time.

    — Subramanian N. G.

Project Revenue

  • C&D Plant Topline Revenue Project Revenue · per annum · High confidence ₹25 crores
    I will put it at Rs. 25 crores because let it stabilize. I think Rs. 25 crores is a reasonable estimate from the C&D plant.

    — Mahendra Ananthula

  • Navi Mumbai C&T (new tender) Annual Revenue Project Revenue · per annum · High confidence ₹100 crores
    Navi Mumbai, I presume we are looking at some Rs. 900 plus cores of revenue over the 9 year period. So that should add up say around Rs. 100 crores of revenue and the C&D plant will give us a very conservative number of Rs. 30 crores per annum.

    — Subramanian N. G.

  • CIDCO Bio-mining Topline Revenue Project Revenue · next year · High confidence ₹45 crores
    From C&T and from construction and demolition, yes, we also have CIDCO Bio-mining project which will be executed next year. So that will also add to the topline. That would be around, let us say about Rs. 45 odd crores.

    — Mahendra Ananthula

Project Capacity

  • Kanjurmarg WTE Plant Capacity Project Capacity · High confidence 3000 tons per day
    We are looking at capacity of about 3000 tons per day. Almost 4-5x that of the PCMC plant.

    — Mahendra Ananthula

Project Timeline

  • Kanjurmarg WTE Plant Construction Timeline Project Timeline · High confidence 2-3 years
    So it will take 2-3 years at least for the? For the construction.

    — Mahendra Ananthula

  • Tire Recycling Commercialization Project Timeline · High confidence 6-9 months
    I think the tire thing can be started in about 6-9 months, say 2-3 quarters.

    — Mahendra Ananthula

Capex

  • Kanjurmarg WTE Plant Capex Capex · High confidence ₹800-₹1,000 crores
    If I just wanted to ask, you mentioned that the waste to energy project at Kanjurmarg could be 4-5 that of PCMC, so can you assume that the overall CAPEX would go in the range of Rs. 800-Rs. 1,000 crores?

    — Bhavya Gandhi

What to watch in Q4 FY25

Clarity on EPR credits

next quarter
Current Early days, policy evolving
Target More 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.

Risks & concerns

  • High outstanding receivables from municipal clients

    medium

    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

  • Regulatory and policy evolution for EPR credits

    medium

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

    Management acknowledged

  • Delays in MIDC land purchase for recycling projects

    medium

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

    Management acknowledged

  • Large CAPEX and debt for Kanjurmarg WTE project

    low

    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

Q&A highlights

6 direct
EPR segment revenue potential and timeline Partial
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

Discrepancy between 15% revenue growth and 3% volume growth Direct
So the collection and transportation volumes have inched up by less than 4% because these are stabilized projects and areas that we work in. So we are seeing around normally an urban center generates anywhere between growth of 3%-6% volumes growth. So we reported around 3.1%, so that is the kind of growth that we are seeing in the areas that we provide services in. The spike in revenue comes primarily due to escalations getting passed on to us through the increase in fuel and minimum wage bills and other miscellaneous items.

Clarified that revenue growth in C&T is primarily driven by escalation pass-throughs (fuel, wages) rather than significant volume increases in existing contracts.

Asked by Neerav Dalal

Debt management, PCMC debt renegotiation, and net debt to equity target Direct
So we have not renegotiated the PCMC loan yet. We are planning to do that maybe 2 years down the line when the PMC loan statement allows us to do that. So the refinancing benefit is coming from our other core businesses, which have seen significant operational efficiency kicking in and also my credit rating has improved in few of my material subsidiaries, which helps us in renegotiating the rates. To comment on our net debt position, if you want to assume that the Company is not going to bag any new contract and the existing contracts are going to be executed, then this Company would be debt free in 4-1/2 years period of time.

Provided clarity on the source of reduced cost of debt (other businesses' refinancing) and reiterated the long-term debt-free target under specific conditions, while also stating PCMC debt renegotiation is not immediate.

Asked by Neerav Dalal

Incremental revenue from new projects (C&D, Navi Mumbai C&T, CIDCO Bio-mining) Direct
From C&T and from construction and demolition, yes, we also have CIDCO Bio-mining project which will be executed next year. So that will also add to the topline. That would be around, let us say about Rs. 45 odd crores. ... I will put it at Rs. 25 crores because let it stabilize. I think Rs. 25 crores is a reasonable estimate from the C&D plant. ... Navi Mumbai, I presume we are looking at some Rs. 900 plus cores of revenue over the 9 year period. So that should add up say around Rs. 100 crores of revenue...

Management provided specific annual revenue estimates for key new projects, giving investors a clearer picture of near-term growth drivers.

Asked by Bhavya Gandhi

Status of VGF funding for PCMC project Direct
Of the Rs. 50 cores of VGF funding, we have received Rs. 45 crores and the same has been applied towards debt repayment. The balance Rs. 5 crores is expected by September 2025.

Confirmed the receipt and utilization of most of the VGF funding for debt repayment and provided a timeline for the remaining balance.

Asked by Ketan R Chheda

Kanjurmarg Waste-to-Energy plant CAPEX and potential debt burden Direct
Yes, thereabout, maybe slightly more because it is going to also have very large Bio-CNG project in addition to the existing composting and RDF production that we do, so it is going to be an integrated project in that respect. ... So Bhavya that would be one part of the transaction is also we have the proposal that we have given off also extends the life of the projects beyond the 2036 which is being governed by the existing tender condition. So we are extending the project life. We are also trying to have a risk mitigation tool by reducing the transportation cost linked to the RDF supplier, which kind of speaks of the shine from the EBITDA margins which we are currently facing at the processing entity. So by coming on with this proposal, we are ensuring that there is 100% circularity and sustainability solution being provided for the city of Mumbai, where in the entire waste gets processed, handled and disposed off in a most efficient manner. So yes, the total debt will definitely increase, but currently my net debt to equity is 0.5x. So even after a drawdown of Rs. 800 crores of debt, I will still be well within serviceable limits based on any infrastructure definition.

Management confirmed the large CAPEX estimate for the Kanjurmarg WTE project and assured that even with increased debt, the net debt to equity ratio would remain within serviceable limits, highlighting the project's long-term strategic benefits.

Asked by Bhavya Gandhi

Renewal of Mumbai C&T project Direct
These are mutually exclusive contract. So the collection and transportation contract are completely delinked with the processing contracts. Those contracts will be coming up for renewal in 2027-2028. So the collection and transportation contracts and waste processing contracts are mutually exclusive. They have their own life cycles.

Clarified the distinct nature and renewal timelines of collection & transportation contracts versus processing contracts, providing visibility on future contract renewals.

Asked by Bhavya Gandhi

3 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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