Baheti Recycling Industries Limited — PPTs, 06-05-2025: Investor Presentation

1. Financial Highlights:

Baheti Recycling posted net sales of ₹524.3 Cr, up 22.1% YoY, with PAT surging 150.1% to ₹18.0 Cr. EBITDA doubled to ₹40.6 Cr, boosting margins 301 bps to 7.75%. H2 momentum was stronger with sales of ₹267.1 Cr (+20%) and PAT ₹11.0 Cr (+159%), while EBITDA margin expanded 337 bps to 9.05%. ROE jumped to 30.46% from 17.3%. Capacity utilization stayed steady near 64% on 29,160 MTPA installed capacity. Equity stands at ₹259.1 Cr; long-term borrowings eased to ₹14.9 Cr, short-term debt rose to ₹141.1 Cr to fund working capital. Fixed assets nearly doubled to ₹20.4 Cr, reflecting ongoing capex.

2. Strategic Initiatives & Growth Drivers:

The company is expanding into zinc alloys and aluminum billets, entering South Indian and European markets including Hungary, Turkey, Germany, and the UK. Plans include adding a Tilting Rotary Furnace by FY26 to lift capacity. Plant upgrades and onboarding marquee automotive clients like Ashley Alteams and Caparo underpin growth. Volume CAGR target is 15-20% over five years. IATF certification is underway to boost credibility in automotive sectors.

3. Business Developments:

Key client additions include Uno Minda, Thai Casting Ltd, Caparo, and Alubee. Export growth is pursued with a focus on cost competitiveness, especially in Europe and the USA. The company’s integrated single-location manufacturing enables customization and timely delivery. Quality processes are robust; IATF license approval is pending, enhancing industry standing.

4. Market Position & Competitive Advantage:

With eight furnaces and three rotary setups, Baheti leverages advanced recycling tech and strong logistics for cost and service leadership. A 25+ year presence and diversified client base across automotive, steel, electrical, and die-casting sectors solidify its market position. Its sustainable recycling focus fits well within a growing aluminum demand driven by EVs and infrastructure.

5. Investor Implications:

Strong financials, capacity expansion, and market diversification indicate positive growth potential. Improved margins and ROE reflect sound execution amid rising alloy demand. Investors should monitor operational leverage gains and IATF certification progress. Key risks relate to scaling new zinc and billet product lines and sustaining market expansion. Overall, Baheti is well placed to benefit from increasing aluminum recycling trends both domestically and abroad.