Praj Industries reported a 42% decline in its net profit for the third quarter of FY25, with profits falling to Rs 41.10 crore, significantly missing the Bloomberg consensus estimate of Rs 78 crore. The company’s consolidated revenue saw a marginal rise of 2.9% YoY to Rs 853.03 crore from Rs 828.62 crore, falling short of analysts’ expectations.
EBITDA declined 25% YoY to Rs 72.71 crore from Rs 97.55 crore, with the EBITDA margin contracting to 8.5% compared to 11.8% in the same period last year. The company’s performance was weighed down by cost pressures and subdued order execution in its Mangalore facility.
Order intake and backlog
During the quarter, Praj Industries’ order intake stood at Rs 1,053 crore, a rise from Rs 921 crore in the preceding quarter but slightly lower compared to the Rs 1,037 crore booked in the same quarter last year. The company’s consolidated order backlog as of December 31, 2024, was Rs 4,341 crore, consisting of 67% domestic orders and 33% international ones.
Management’s outlook
Shishir Joshipura, MD & CEO, expressed optimism despite the weaker performance, highlighting the company’s growing order book and increasing international business share. He acknowledged the delays in the Mangalore facility as a key challenge but emphasized recovery through FY26.
Stock performance details
- Current share price: Rs 608.15 (down 4.36%)
- Previous close: Rs 635.85
- Day range: Rs 603.20 – Rs 619.00
- Market cap: Rs 111.91 billion
- 52-week range: Rs 448.00 – Rs 875.00
The company continues to attract bullish recommendations, with all eight analysts tracking the stock maintaining a ‘buy’ rating, forecasting an average 12-month price target suggesting a potential upside of 28.4%. However, investors remain cautious due to the subdued earnings this quarter.
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