Rajshree Nov-24

Rajshree Polypack Limited achieved Rs. 88.28 crore in Q2 FY25, representing a 30.79% increase compared to the previous year's Rs.67.50 crore.

The volume of Rajshree Polypack Limited's business increased by 24.6% in Q2 FY25, showcasing a strong momentum and potential.

The EBITDA for Q2 FY25 was Rs. 13.34 crores, representing a 46.43% increase compared to the previous year's Rs. 9.11 crore.

The EBITDA margin improved from 13.5% to 15.11% year-on-year during Q2 FY25.

The profit after tax for Q2 FY25 was Rs. 5.10 crore, which shows a 120% increase compared to Rs. 2.31 crore in the previous year's Q2.

Rajshree Polypack's sales reached Rs. 166.98 crore in H1 FY25, 19.11% higher compared to Rs. 140.19 crore in H1 FY24.

Ramswaroop Thard is the Chairman & Managing Director of Rajshree Polypack Limited.

Sunil Sharma is the CFO of Rajshree Polypack Limited.

EBITDA for the first half of fiscal year 2025 grew by 39.74% compared to the same period last year.

Profit After Tax (PAT) for the first half of fiscal year 2025 increased by 107% compared to the previous year.

Export sales in the second quarter of fiscal year 2025 were Rs. 10.55 crore, compared to Rs. 10.02 crore in the same period of the previous year.

Sheet sales grew significantly, from Rs. 17.97 crore in Q2 FY24 to Rs. 34.2 crore in Q2 FY25, due to festive season demand.

Thermoformed packaging product sales increased by 8% in Q2 FY25, from Rs. 41.73 crore to Rs. 44.91 crore, driven by festive season demands.

Injection molding sales saw a 57% increase in Q2 FY25, from Rs. 4.29 crore to Rs. 6.73 crore, supported by export orders and increased capacity.

The company added a new thermoforming machine, increasing installed capacity to 10,770 metric tons per annum, potentially to 11,520 metric tons per annum.

The company's extrusion capacity increased from 20,000 metric tons per annum to 24,000 metric tons per annum, with commercial production starting in January 2025.

A type of packaging that protects the product from external factors like moisture, oxygen, and light, often used for food and pharmaceutical products.

The current demand for barrier packaging comes mainly from the Indian sweet and savory food market, with seasonal peaks in demand.

Rajshree Polypack aims to achieve Rs. 35 to Rs. 37 crores in barrier packaging sales for the current year.

The existing barrier packaging machine has a potential to generate Rs. 60 to Rs. 65 crores in revenue, with further growth potential of Rs. 20 to Rs. 25 crores.

Rajshree Polypack is expecting its first export order for its Olive Ecopack line, specifically in confectionary products.

In a previous call, Rajshree Polypack mentioned a Rs. 20 crore export order to a distributor, the status of which is being inquired about.

Rajshree Polypack expects to see good export growth in the second half of the year and into the next year.

Rajshree Polypack is actively approaching large Quick Service Restaurant (QSR) brands to generate demand for their Olive Ecopack line.

The company has begun commercial production and made its first delivery to a new customer, generating an initial purchase order worth Rs. 3 crore. This implies that the company's business is expanding and securing new clients.

The new customer is projected to generate approximately Rs. 3 crore in revenue per month, indicating a significant and steady income stream for the company.

The company offers custom-made products, specifically molds, based on individual customer requirements. This demonstrates the company's ability to cater to specific needs and potentially gain a competitive advantage through specialization.

The confectionery customer is expected to contribute approximately Rs. 5 to Rs. 6 crore in annual revenue, illustrating the potential for growth and profitability in this segment.

Exports are projected to account for 15% to 16% of the company's total revenue, indicating a strong export market presence and potential for international growth.

The company is aiming for a total revenue of approximately Rs. 310 to Rs. 320 crore, reflecting its expectations for continued growth and profitability.

The company's joint venture is falling slightly behind expectations due to production and sales stabilization challenges. This highlights the complexity of partnerships and the need for effective management and coordination.

The joint venture's progress has been delayed by one to one and a half quarters, indicating that achieving planned milestones requires adjustments and potentially additional time.

Rajshree Polypack aims to achieve Rs. 30 to Rs. 35 crore in sales for Olive Ecopack in the current fiscal year.

Rajshree Polypack's plant has the capacity to produce enough Olive Ecopack to generate Rs. 180 crore in sales next year.

Rajshree Polypack has deferred investment in their Odisha plant for 6 to 8 months, focusing on Olive Ecopack instead.

Rajshree Polypack witnessed a significant 70% year-on-year growth in sheet volume, mainly from the barrier packaging segment.

Rajshree Polypack saw 6% year-on-year growth in packaging volume.

The festive season boosted demand for Rajshree Polypack's thermoformed packaging and sheet products, contributing to strong growth.

Rajshree Polypack expects to see significant export growth in the latter half of the fiscal year and into the next.

Rajshree Polypack is targeting large Quick Service Restaurant (QSR) brands to increase Olive Ecopack demand.

Rajshree Polypack projected a revenue of Rs. 315 to Rs. 320 crores for FY25.

The company expects a 12% to 15% growth in revenue from FY25 levels for FY26.

Considering the potential revenue from Olive, the company aims for a combined revenue around Rs. 475 crores in FY26.

Rajshree Polypack estimates Olive's revenue contribution to be around Rs. 170-180 crores in FY26.

The company aims to maintain an EBITDA margin of 14.5% plus or minus 0.5% in FY26.

The company's EBITDA margin is projected to increase from around 12% in the last two quarters to at least 14% in FY26.

The company anticipates that the new capacities coming online will significantly impact the overall revenue and EBITDA for the next fiscal year.

The company currently has limited plans for major investments, particularly for the next two quarters.