Pyramid Technoplast Limited — PPTs, 13-11-2024: Investor Presentation

**Financial Highlights:** Pyramid Technoplast reported a revenue of ₹133.1 Cr for Q2 FY25, a slight decrease from ₹133.6 Cr in Q1 FY25 while marking an increase from ₹131.9 Cr in Q2 FY24. However, gross profit declined to ₹33.8 Cr, leading to a gross margin of 25.2%. EBITDA dropped to ₹10.4 Cr with an EBITDA margin of 7.8%. PAT for the quarter was ₹5.7 Cr, resulting in a net profit margin of 4.3%.

**Strategic Initiatives and Growth Drivers:** The company continues to enhance its capacity, with the metal drum production set to increase from 50k to 90k units per month by December. The recently commissioned IBC unit is already operating at 50% capacity, and a second unit is planned for early FY26.

**Business Developments:** A significant investment of ₹8-10 Cr is earmarked for a recycling plant adjacent to Unit 6, with an expected payback period of 2.5-3 years. The construction is scheduled to finish by May 2025.

**Market Position and Competitive Advantage:** Pyramid Technoplast capitalizes on diverse manufacturing locations and a strong product portfolio, featuring polymer drums and IBCs that cater to multiple industries, enhancing its competitive edge.

**Investor Implications:** Despite some margin contraction driven by increased competition and operational costs, the company's expansion plans, coupled with ongoing capital investments, suggest a robust growth trajectory and present promising investment opportunities. Positive outlook as capacity expansions are expected to boost volume growth significantly in the coming quarters.