Rajshree Polypack Limited Reports Q3 FY25 Financial Results, Announces Capacity Expansion

Thane, February 5, 2025 – Rajshree Polypack Limited (NSE: RPPL) announced its unaudited financial results for the quarter and nine months ended December 31, 2024, reporting revenue growth and strategic capacity expansion.

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Financial Performance Highlights​

Consolidated Financials (₹ in Lakhs)​

• Revenue Growth: YoY revenue increased by 12.14% in Q3 FY25.
• Net Profit Decline: Q3 FY25 reported a net loss of ₹93.92 lakh, impacted by a share of loss from its jointly controlled entity (₹261.06 lakh).
• 9M FY25 Profitability: Profit for nine months stood at ₹411.27 lakh, down from ₹561.43 lakh in 9M FY24.

Standalone Financials (₹ in Lakhs)​

• Standalone Performance: Unlike consolidated results, Rajshree Polypack remained profitable on a standalone basis, reporting ₹167.14 lakh net profit for Q3 FY25.
• Stronger 9M Standalone Growth: 9M FY25 PAT increased by 51% YoY, reflecting improved operating efficiency.

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Key Announcements​

Stock Split & ESOP Adjustment​

• The company completed a stock split on September 18, 2024, reducing the face value from ₹10 to ₹5 per share.
• The Employee Stock Option Plan (ESOP) 2022 was adjusted accordingly.

Capacity Expansion Investment​

• The Board approved the procurement of Thermoforming and Extrusion machines to increase production capacity.
• Investment Required: ₹3.50 crore.
• Funding Mode: Debt and internal accruals.
• Location: Daman.
• Capacity Expansion:
  • Extrusion Machine: +1,600 MTPA, increasing total to 25,600 MTPA.
  • Forming Machine: +1,100 MTPA, increasing total to 11,370 MTPA.
• Completion Timeline: By June 2025.

Utilization of Funds Raised​

• No deviation in fund utilization.
• Funds raised via preferential issue of equity shares and convertible warrants(₹16.20 crore in December 2023) were used for:
  • Long-term working capital: ₹13.97 crore.
  • General corporate purposes: ₹4.50 crore.

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Management Commentary​

Ramwaroop Thard, Chairman & Managing Director, stated:

"Despite industry challenges, our strong revenue growth demonstrates market demand for our products. The capacity expansion will enhance our production capabilities and ensure long-term sustainability. We are committed to strategic investments that create value for stakeholders."

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Strategic Outlook​

• Revenue Momentum: Continued growth in plastic packaging sector demand.
• Capacity Addition: Expansion to support future orders and maintain leadership.
• Operational Efficiencies: Focus on cost optimization and improved margins in FY26.

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Conclusion​

While Rajshree Polypack reported a net loss in Q3 FY25 due to joint venture losses, its core operations remain strong, and the company is positioning itself for future growth with capacity expansion and strategic investments. Investors will watch for margin improvements and profitability recovery in the coming quarters.