Antony Waste Handling Cell Limited — Q4 FY25 earnings call

Call held 30 May 2025

Management summary

Antony Waste Handling Cell Limited reported a strong Q4 FY25 with operating revenue growing 14% YoY to ₹223 crores and EBITDA up 33% YoY to ₹58 crores, driven by efficient operations and an exceptional arbitration gain of ₹23.9 crores. For the full year FY25, revenue grew 10% to ₹842 crores, and EBITDA grew 9% to ₹220 crores, maintaining a 23% margin. The company highlighted robust operational performance in its Waste-to-Energy and C&D recycling segments, alongside strategic initiatives like the AG Enviro merger and a substantial order book of ₹8,300 crores, positioning it for sustained long-term growth despite a marginal 1% PAT growth for FY25.

Highlights

  • Operating revenue grew 14% YoY to ₹223 crores in Q4 FY25 and 10% YoY to ₹842 crores for FY25, demonstrating solid growth across segments.

  • EBITDA increased 33% YoY to ₹58 crores in Q4 FY25, with margins at 23%, reflecting strong operational excellence.

  • An exceptional gain of ₹23.9 crores was realized from a favorable arbitration settlement, enhancing the company's financial stability.

  • The PCMC Waste-to-Energy facility achieved an impressive 82% average plant load factor for FY25, highlighting reliability and efficiency.

  • The construction and demolition waste recycling initiative achieved a remarkable 96% recycling rate, setting a new industry benchmark.

Concerns

  • PBT before exceptional items for FY25 declined to ₹95 crores from ₹109 crores in FY24, primarily due to higher interest and depreciation expenses.

  • PAT for FY25 showed only marginal growth of 1% to ₹101 crores, despite strong operational performance.

  • Some client escalation amounts were not recognized in FY25 due to pending clarification, impacting the reported operating revenue growth.

Key financials

2 periods

Q4 FY25

  • Operating Revenue
    ₹223 Cr
    YoY +14%
  • EBITDA
    ₹58 Cr
    YoY +33%
  • EBITDA Margin
    23%
  • PBT before exceptional
    ₹25 Cr
    YoY +90%
  • PAT
    ₹46 Cr
    YoY +53%
  • Exceptional Gain
    ₹23.9 Cr

FY25

  • Operating Revenue
    ₹842 Cr
    YoY +10%
  • EBITDA
    ₹220 Cr
    YoY +9%
  • EBITDA Margin
    23%
  • PBT before exceptional
    ₹95 Cr
  • PAT
    ₹101 Cr
    YoY +1%
  • Cash Flow from Operations post taxes
    ₹187 Cr
    YoY +34%

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

SegmentRevenue Share (FY25)Revenue (Q4 FY25)Revenue (FY25)
MSW C&T61%₹141 Cr₹581 Cr
Processing27%₹82 Cr₹261 Cr
Contracts & Other12%——

Order book

high confidence

Total value

₹8,300 Cr

as of 2025-03-31 quantified

Execution

58% long tail expiring by 2040, balance over next 12 years; average 13-14 years

Composition

Mix 2 others
  • Long tail 58%
  • Balance 42%

Share of order book by other

Pipeline

other

5 waste to energy tenders (3 submitted, 2 working on) and Mumbai C&T tenders (8 packages), plus one package in South India.

The company has a healthy order book of ₹8,300 crores, providing long-term visibility with an average execution period of 13-14 years, and an active pipeline of new bids in both processing and C&T segments.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹473 Cr · Net ₹341 Cr · 0.4× EBITDA Cost 9.1%
    • Repayment Cash received from arbitration process used for debt repayment and collateral. ₹28 Cr
    • Repayment VGF funds received for PCMC WTE plant used to retire debt and provide collateral. ₹45 Cr
    As of March 25, the group's gross debt stood at approximately Rs. 473 crores with cash and bank balances of around Rs. 132 crores, resulting in net debt of approximately Rs. 341 crores. This indicates a net debt to equity of 0.4x. The group's weighted cost of debt is approximately 9.1% and the DSOs remained stable at 101.
  • M&A AG Enviro Merger · Announced

    Optimizing operational performance and financial strength, anticipating significant improvement in operational synergy, cost effectiveness and overall financial stability.

    Anticipates significant improvement in operational synergy, cost effectiveness and overall financial stability, positioning itself for sustained growth.

    Additionally, our wholly owned subsidiary AG Enviro had commenced worldwide operation under the recent renewed Navi Mumbai Municipal Corporation contract. This strategic renewal showcases the company's strong foothold in the region and showcases its ability to effectively resecure and manage collection and transportation projects. Furthermore, as part of the strategic initiative aimed at optimizing both operational performance and financial strength, the company had commenced the processing of merging AG Enviro, its large wholly owned subsidiary with the publicly listed holding company. With this planned reorganization of integrating AG Enviro into the holding company, the organization anticipates significant improvement in operational synergy, cost effectiveness and overall financial stability, positioning itself for sustained growth.
  • Liquidity Cash ₹132 Cr Cash and bank balances are available, with some used as collateral for bank guarantees and earnest money deposits.
    As of March 25, the group's gross debt stood at approximately Rs. 473 crores with cash and bank balances of around Rs. 132 crores, resulting in net debt of approximately Rs. 341 crores.

Guidance & targets

Profitability

  • Core EBITDA Margin Profitability · next 2-3 quarters · High confidence 22-23%
    No, actually the core EBITDA margin will move towards 22%-23%.

    — Subramanian N. G., Group Chief Financial Officer

Volume

  • Construction & Demolition Waste Processing Volume Volume · next 6 months · High confidence 600-700 tons per day

    Previously 250-300 tons per day → 600-700 tons per day

    So we expect that in the next 6 months, this number of 250-300 tons per day kind of processing will increase to 600-700 tons.

    — Subramanian N. G., Group Chief Financial Officer

Revenue

  • Construction & Demolition Waste Processing Annual Revenue (at 600 tons/day) Revenue · annual · High confidence ₹30-32 crores
    I would say that in our business plan, we are working with the 600 tons per day kind of number. So with the kind of tipping fee that we have, we will have about Rs. 30-Rs. 32 crores of annual revenue.

    — Mahendra Ananthula, Group President

Growth

  • Core Revenue CAGR Growth Growth · long-term · High confidence 20-25%
    So we have been guiding at 20%-25% CAGR growth on our core revene, not a year-on-year growth. As I mentioned, it is very difficult for us to maintain that kind of year-on-year growth. ... a 20%-25% is achievable based on the project pipeline that we have.

    — Subramanian N. G., Group Chief Financial Officer

  • C&T Business Growth (volume + escalation) Growth · next 2-3 years · High confidence 8-11%
    If we were to work on our existing projects on the C&T business with escalation and the volume growth, we will be looking at anywhere between 8%-11% depending upon the escalation again. We will normally see volumes growth of around 3%-4% and the escalation gives additional 3%-8% depending upon the minimum wage change and the HSD component price swings.

    — Subramanian N. G., Group Chief Financial Officer

Project Timeline

  • Tyre Recycling/Vehicle Scrapping Project Operational Phase Project Timeline · FY27 onwards · High confidence Operational from FY27 onwards
    Yes, as I mentioned, we have already identified the land. We expect to close the land deal in the next 4 months. And then it is 6-9 months process for implementation of the project. So you can say from FY '27 onwards, it will be the operational phase for the project.

    — Mahendra Ananthula, Group President

What to watch in Q1 FY26

Land acquisition for vehicle scrapping/tyre recycling project

Next couple of months
Current Identified one piece of land
Target Deal closed

Why it matters

Crucial for the diversification strategy into new, less municipal-dependent revenue streams and future growth.

We are pleased to announce that we have identified one piece of land and we should be closing this deal in the next couple of months, and hopefully in the next earnings call, we will be giving an update on that.

Risks & concerns

  • Kanjurmarg project denotification and potential termination

    high

    Bombay High Court set aside 2009 denotification, restoring protected forest status; BMC and State Government plan to challenge in Supreme Court. Company is seeking independent valuation for potential termination compensation as per concession agreement.

    Both acknowledged

  • Delay in recognition of client escalation amounts

    medium

    Few client escalation amounts were not recognized in FY25 due to pending clarification and confirmation, impacting current financial year's operating revenue.

    Management acknowledged

  • Dependency on B2G contracts and associated payment delays

    medium

    The waste management industry is B2G-heavy, which can be challenging. The company is actively seeking non-municipal clients and being selective with municipal contracts to mitigate this risk.

    Analyst acknowledged

Q&A highlights

8 direct
New contract bids (processing vs. C&T) and diversification strategy. Direct
When it comes to processing projects, we have already submitted 3 waste to energy tenders, 2 in the South and 1 in the Western part of the country and 2 more waste to energy projects we are currently working on the tenders. So, there are 5 processing projects to answer your question. And in the Collection and Transportation segment, as we speak, we are currently working on the Mumbai C&T tenders, the 8 packages in Mumbai, they have come up last week. We will be bidding for it. And apart from this, there is also one package in South of India, which we will be bidding for.

Clarifies the company's active bidding pipeline in both processing (higher margin) and C&T segments, indicating future growth avenues and strategic focus.

Asked by Atul Daga

Reducing dependency on municipal corporations and progress on new opportunities (waste-to-steam, vehicle scrapping). Direct
As we speak, we are in the advanced stage of discussion with a very large Indian corporate to set-up a municipal solid waste to steam project. So, unlike a waste to energy project where we process RDF to generate electricity, this would be producing process steam and this corporate would be using it for their captive manufacturing facility. This is a project that we are very excited about. And coming to the end of life vehicle scrapping and so on, as we had mentioned in the previous earnings call, we wanted to buy land for the project. We are pleased to announce that we have identified one piece of land and we should be closing this deal in the next couple of months, and hopefully in the next earnings call, we will be giving an update on that.

Highlights strategic shift towards non-municipal clients and provides an update on new diversification projects, which could reduce B2G dependency and open new revenue streams.

Asked by Atul Daga

Status of long-due receivables and pending arbitration cases. Direct
So we have one large case which is pending in the Supreme Court for the final hearing. So that would be to the tune of around Rs. 15 crores. And additionally there are around Rs. 19 crores of unbilled revenues waiting confirmation from the clients. So these are the 2 large revenue blocks, which is still outside for which we are awaiting clarification and confirmation from the legal body and from the clients.

Provides clarity on significant outstanding receivables and their status, which represent potential future cash inflows and impact financial health.

Asked by Rupam Jaiswal

Breakdown of the ₹8,300 crores order book and its execution timeline. Direct
So of the Rs. 8,300 crores, on a percentage basis, close to 58% is having a long tail which will expire by 2040. The balance would be executed over the next 12 years. ... It takes us 15 years, on an average, it will be 13-14 odd years?

Details the long-term visibility and average execution period of the order book, crucial for understanding future revenue predictability in the utilities sector.

Asked by Rohit Maheshwari

Discrepancy between investor expectations of YoY growth and company's focus on CAGR. Direct
As we have been reiterating we cannot show a linear growth of 15%-20% on a year-on-year basis. We will be showing CAGR growth, which will be stepped up growth for us because as and when we bag a contract the revenue starts coming in C&T business after 8 months and in case of processing after 2.5 years. So we will not be able to show a 10%, 15%, 20% year-on-year growth, but if you look at CAGR growth, that is the historical trend and that is the pathway that we have.

Addresses analyst's concern about lower YoY growth, clarifying the company's project-based revenue recognition model and its focus on long-term CAGR.

Asked by Rohit Maheshwari

Plans for debt retirement using cash and arbitration/VGF proceeds. Direct
So of the Rs. 132 crores of debt, bulk of them have been given as collateral for bank guarantees and earnest money deposit for ongoing contracts. Rs. 28 crores of cash is recently received as of the month end from the arbitration process that we won. So the plan is to use the capital in a very judicious manner. There are a couple of upcoming projects which Mahendra had mentioned. So we will be using this as an equity contribution towards those new projects. And if nothing fructifies, then yes, we will be applying the same towards debt repayment.

Explains the company's strategy for utilizing available cash, including arbitration proceeds and VGF, for new projects or debt reduction, which will impact future interest costs and financial leverage.

Asked by Ketan R Chheda

Implications of the Kanjurmarg court case and potential termination compensation. Direct
So, we actually are engaging one of the big four for doing an independent valuation exercise for the same for the same reason. But as you rightly said, this is a hypothetical situation because as you would have noticed that BMC officially had made a statement that the city would come to a standstill if this project had to stop because they have no other alternative site to serve. But we are very clear and as we said also in our commentary that in case, the worst-case scenario, if the project is terminated, then as per the concession agreement our rights are protected, and we will seek termination payments. The amount invested and the loss of revenue. So, to get to a number, we are taking help of one of the big four audit firms.

Addresses a significant regulatory risk, outlining the company's protective measures and the process for seeking compensation if the Kanjurmarg project is terminated, which is critical for investor confidence.

Asked by Ketan R Chheda

Company's bidding strategy (more WTE plants vs. C&T contracts). Direct
No, we actually want to have a balance of the two because both have their advantages and disadvantages. But in collection and transportation contracts, we are also very choosy. So that is why we are bidding only for large cities or large municipalities who have the ability to pay and have a good track record of payments.

Clarifies the company's balanced bidding approach, focusing on both C&T (in large cities with good payment records) and processing (WTE, waste-to-steam), rather than solely shifting to WTE, indicating a prudent risk management strategy.

Asked by Sevanth Bommannagiri

3 min read 7 chapters

Detailed narrative

Strong Q4 and FY25 Financial Performance

Antony Waste Handling Cell Limited reported a robust Q4 FY25, with operating revenue growing 14% year-on-year to ₹223 crores. Full-year FY25 operating revenue reached ₹842 crores, a 10% increase from FY24. EBITDA for Q4 FY25 stood at ₹58 crores, marking a 33% year-on-year growth with a 23% margin, consistent with the full-year EBITDA of ₹220 crores (9% YoY growth, 23% margin). The company also recorded an exceptional gain of ₹23.9 crores from a favorable arbitration settlement, contributing to a 53% YoY PAT growth in Q4 to ₹46 crores, though full-year PAT saw only a marginal 1% growth to ₹101 crores.

Operational Excellence in Waste-to-Energy and Recycling

The PCMC Waste-to-Energy facility demonstrated exceptional operational efficiency, achieving an impressive 82% average plant load factor for FY25 and generating over 26 million green units in Q4 FY25, avoiding 2,629 tons of CO2 equivalent. The construction and demolition waste recycling initiative set a new industry benchmark with a 96% recycling rate. Total MSW volume managed for FY25 grew 6% year-on-year to 4.93 million tons, while waste processed in Q4 FY25 increased 30% YoY to 0.87 million tons, showcasing strong operational capabilities and asset utilization.

Strategic Diversification and New Project Pipeline

The company is actively pursuing diversification beyond municipal contracts, including advanced discussions for a waste-to-steam project with a large Indian corporate for captive manufacturing. In the processing segment, Antony Waste has submitted bids for 3 waste-to-energy tenders and is working on 2 more. Progress is also being made on the end-of-life vehicle scrapping project, with land identified and a deal expected to close in the next couple of months, targeting operationalization from FY27, further reducing B2G dependency.

Order Book and Long-Term Growth Visibility

Antony Waste maintains a healthy order book of approximately ₹8,300 crores, providing long-term revenue visibility. About 58% of this order book has a long tail, expiring by 2040, with the remaining balance to be executed over the next 12 years, averaging 13-14 years for execution. Management emphasized a focus on 20-25% CAGR growth rather than linear year-on-year growth, given the project-based nature of their business where revenue recognition occurs after 8 months for C&T and 2.5 years for processing projects.

Financial Position and Capital Management

As of March 2025, the company's gross debt stood at ₹473 crores, with cash and bank balances of ₹132 crores, resulting in a net debt of ₹341 crores and a net debt to equity ratio of 0.4x. The weighted cost of debt was 9.1%. Cash flow from operations post taxes improved significantly by 34% year-on-year to ₹187 crores for FY25. The company utilized ₹28 crores from arbitration proceeds and ₹45 crores of Viability Gap Funding (VGF) for PCMC WTE for debt reduction and collateral, with the balance ₹5 crores of VGF expected in the next 6 months.

Kanjurmarg Project Regulatory Update

The Bombay High Court set aside the 2009 denotification of the Kanjurmarg landfills, restoring its protected forest status. The State Government and BMC intend to challenge this order in the Supreme Court, citing the essential nature of the service and lack of immediate alternatives. Antony Waste's concession agreement protects its rights, and the company is engaging a 'big four' audit firm for an independent valuation to determine potential compensation for invested capital and foregone revenue in case of project termination.

Segmental Revenue Mix and Product Sales Growth

For FY25, MSW Collection & Transportation contributed 61% of the revenue, Processing accounted for 27%, and Contracts & Other for 12%, reflecting a slight shift from FY24's mix (62%, 23%, 14% respectively). The company achieved record annual sales for both compost and Refuse Derived Fuel (RDF), with RDF sales increasing to 148,000 tons and compost sales nearly doubling to 21,200 tons for FY25 compared to FY24, underscoring growing market acceptance for its high-quality sustainable products.

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