GRP Limited Reports 20% Revenue Growth in Q3 FY25, Announces Strategic CAPEX Plan

474564387_1011965627615578_8210430351778850504_n.webp

Mumbai, January 28, 2025GRP Limited, a leading integrated polymer recycling company, has reported a 20% increase in consolidated revenue for Q3 FY25, reaching ₹1,327 million compared to ₹1,102 million in Q3 FY24. The company attributed the growth to increased reclaim rubber volumes and the scaling of its subsidiaries.

Key Financial Highlights (Q3 FY25)

  • Revenue from Operations: ₹1,327 million (+20% YoY)
  • EBITDA: ₹130 million (+20% YoY)
  • Net Profit (PAT): ₹44 million (+2% YoY)
  • EBITDA Margin: 9.8%
  • Gross Profit Margin: 53.1%, down 246 bps YoY, due to higher raw material costs.
For the nine months ended December 31, 2024 (9M FY25):
  • Revenue: ₹3,912 million (+20% YoY)
  • EBITDA: ₹363 million (+23% YoY)
  • Net Profit: ₹113 million (+3% YoY)

Strategic Expansion and CAPEX

The company announced a ₹250 crore CAPEX plan to be executed over three years. Key highlights include:
  • Phase 1 Investment: ₹150 crore to be deployed by December 2025.
  • Funding Sources:
    • €15 million External Commercial Borrowing (ECB) from PROPARCO.
    • ₹150 crore via Qualified Institutional Placement (QIP).
  • Focus Areas:
    • Advanced reclaim rubber technologies with reduced CO2 emissions.
    • Expansion in crumb rubber and plastic recycling capabilities.
To date, the company has incurred ₹33 crores towards setting up facilities for crumb rubber, tire pyrolysis oil, and recovered carbon black, with operations expected to commence in Q4 FY25.

Management Commentary

Harsh Gandhi, Managing Director, GRP Limited, said:
"Our Q3 FY25 results demonstrate strong progress across our business verticals. The strategic CAPEX plan reinforces our commitment to sustainability and operational excellence, ensuring long-term value creation."

Growth Drivers

  • Reclaim Rubber Segment: Achieved 10% volume growth in Q3 FY25, supported by robust domestic and international demand.
  • Repurposed Polyolefins Business: Gained incremental approvals from global brands, contributing to margin improvements.
  • EPR Credit Sales: Generated ₹121 million year-to-date, with an estimated additional stock worth ₹180 million.

Outlook

GRP Limited remains optimistic about its sustainability-focused portfolio, leveraging strong customer relationships and global demand for recycled materials.
 
Back
Top