Ganesha Ecosphere Limited — Important, 12-11-2024: Updates

**Financial Highlights:** Ganesha Ecosphere's Q2 FY25 consolidated revenue from operations surged to INR 386.81 Cr, up 39% YoY from INR 278.45 Cr, while EBITDA jumped to INR 55.3 Cr, reflecting a margin increase to 14.3%. The net profit after tax improved significantly to INR 27.11 Cr, a notable rise from INR 2.80 Cr in Q2 FY24.

**Strategic Initiatives and Growth Drivers:** The company commenced operations at a new production line for recycled PET (rPET) granules, enhancing capacity utilization above 70%. Additionally, a strategic investment of approximately INR 16 Cr was made in Race Ecochain Ltd to bolster scrap sourcing. There's a planned capacity expansion of 45,000 TPA of rPET granules in Odisha, with an estimated capital expenditure of INR 450 Cr for Phase 1.

**Business Developments:** Ganesha maintains a robust order book for rPET granules anticipated over the next year. A joint venture with Race Ecochain Ltd is now underway, focusing on establishing washing plants for PET bottle scrap, aligned with future raw material requirements.

**Market Position and Competitive Advantage:** As a leader in the PET recycling sector, Ganesha Ecosphere is poised for growth, driven by increasing demand for sustainable products and strong relationships within the supply chain.

**Investor Implications:** With the company poised for substantial growth, driven by strategic expansions and successful investments, it presents a potential upside for investors. Continued growth in revenue and profitability metrics could indicate a positive outlook for the fiscal year ahead.