HMA Agro Industries Limited — Q3 FY25 earnings call

Call held 11 Feb 2025

Management summary

HMA Agro Industries reported a strong financial performance for Q3 and 9M FY25, driven by significant revenues and strategic achievements. Key milestones include attaining 5-star export house status and signing an MOU with Selangor, Malaysia, aimed at expanding market presence and fostering bilateral trade. Management expressed optimism for continued growth in the upcoming quarters, emphasizing strategic focus on financial performance, procurement, and sales.

Highlights

  • Consolidated Revenue for Q3 FY25 was ₹1,455.98 crores, and for 9M FY25 was ₹3,633.46 crores.

  • Consolidated EBITDA for Q3 FY25 was ₹57.98 crores, and for 9M FY25 was ₹145.48 crores.

  • Consolidated PAT for Q3 FY25 was ₹41.27 crores, and for 9M FY25 was ₹104.77 crores.

  • The company secured 5-star export house status from the Government of India.

  • A Memorandum of Understanding (MOU) was signed with Selangor, Malaysia, aiming for product supply, joint research, and bilateral trade.

Key financials

2 periods

Q3

  • Consolidated Revenue
    ₹1,455.98 Cr
  • Consolidated EBITDA
    ₹57.98 Cr
  • Consolidated PAT
    ₹41.27 Cr

9M

  • Consolidated Revenue
    ₹3,633.46 Cr
  • Consolidated EBITDA
    ₹145.48 Cr
  • Consolidated PAT
    ₹104.77 Cr

What they filed

Q1 FY27: revenue up 90.4%, net profit up 357.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,367 1,365 1,437 1,088 2,149 +57%1,993 +46%1,538 +7%2,072 +90%
EBITDA28 28 -19 7 37 +32%42 +50%2 +111%-16 −329%
Net profit25 34 -1 7 48 +92%52 +53%19 +2000%32 +357%
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.

Capital allocation

high confidence
  • M&A Selangor, Malaysia (Government Entity) Joint venture · Signed

    To supply products to Malaysia, conduct joint research, strengthen India-Malaysia bilateral trades, and foster collaboration and mutual growth.

    Another milestone that company has achieved, we have signed the MOU with the Selangor, Malaysia [inaudible 0:04:24]. And this will give us strength to supply us a good quantity of our product to Malaysia. This MOU also bring us opportunity where we will do a joint research initiative with the government entity to know the market, and also this will give us strength to India and Malaysia bilateral trades, which will give us strong collaboration and mutual growth to both of the companies.

What to watch in Q4 FY25

Progress on Selangor, Malaysia MOU

Next quarter
Current MOU signed
Target Initial project/trade activities, research outcomes

Why it matters

The MOU represents a significant step for international expansion and market presence, and its progress will indicate future growth avenues.

Another milestone that company has achieved, we have signed the MOU with the Selangor, Malaysia [inaudible 0:04:24].

Q&A highlights

0 direct, 1 evasive
No questions asked Evasive
I think, there are no questions. So we can conclude this call.

The Q&A session was concluded without any questions from analysts, indicating either a very clear presentation or a lack of engagement.

1 min read 4 chapters

Detailed narrative

Q3 & 9M FY25 Financial Performance Overview

HMA Agro Industries reported robust financial results for Q3 FY25, with consolidated revenue reaching ₹1,455.98 crores and consolidated EBITDA at ₹57.98 crores. The consolidated Profit After Tax (PAT) for the quarter stood at ₹41.27 crores. For the nine-month period ended December 31, 2024, consolidated revenue was ₹3,633.46 crores, consolidated EBITDA was ₹145.48 crores, and consolidated PAT was ₹104.77 crores. Standalone figures also showed strong performance, with Q3 revenue at ₹1,364.77 crores and 9M revenue at ₹3,425.33 crores.

Strategic Achievements & Market Expansion

The company achieved a significant milestone by being recognized as a 5-star export house by the Government of India, indicating its strong position in the export market. Furthermore, HMA Agro Industries signed a Memorandum of Understanding (MOU) with Selangor, Malaysia. This MOU is expected to provide opportunities for product supply to Malaysia, facilitate joint research initiatives with government entities to understand the market, and strengthen bilateral trade relations between India and Malaysia, fostering mutual growth.

Operational Highlights

Management highlighted strong operational performance, including securing existing clients and successfully adding new clients despite a challenging market environment. The company also noted a strong purchase back from its existing client base, indicating customer loyalty and product demand. These efforts are part of a broader strategy to strengthen operations, expand capacity, and enhance market presence.

Outlook and Growth Trajectory

The management expressed a positive outlook for the coming quarters, anticipating continued growth at a strong and stable pace. They emphasized that the company is focused on making good strategies related to financial performance, procurement, and sales. The expectation is that the 'growth bar will be going up and up,' reflecting confidence in their strategic initiatives and collective efforts.

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