Everest Kanto Cylinder Ltd (NSE:EKC)
₹ 113.62 -0.93 (-0.81%) Market Cap: 12.74 Bil Enterprise Value: 13.87 Bil PE Ratio: 8.66 PB Ratio: 0.90 GF Score: 80/100

Q2 2025 Everest Kanto Cylinder Ltd Earnings Call Transcript

Nov 27, 2024 / 10:30 AM GMT
Release Date Price: ₹214.84 (-1.57%)

Key Points

Positve
  • Everest Kanto Cylinder Ltd (BOM:532684) reported a strong performance in Q2 FY25 with a 22.7% year-on-year increase in consolidated revenue.
  • The company's EBITDA grew by 28.7% year-on-year, reaching INR 53.1 crores, with a margin of 14.5%.
  • The PAT saw a notable increase of 47% year-on-year to INR 38.6 crores, driven by strong international operations, particularly in the US.
  • The company is expanding its manufacturing capabilities in Egypt and Mundra, India, to meet the growing demand for high-pressure gas, CNG, and hydrogen cylinders.
  • Everest Kanto Cylinder Ltd (BOM:532684) is well-positioned to capitalize on the growing opportunities in the seamless cylinder market, both domestically and internationally, with a focus on sustainable energy solutions.
Negative
  • Despite revenue growth, the company's EBITDA margins in the Indian market remain lower at 7%, with a drop in the casket business margin.
  • The Two Wheeler CNG business is not yet a significant contributor to margins, as the product is low-cost and volumes are still ramping up.
  • The US business, while profitable, is project-based and may exhibit lumpy performance due to the timing of order execution.
  • The company's borrowing has increased significantly, from INR 39 crores to INR 114 crores, impacting interest expenses.
  • The market in Nigeria is still in its nascent stage, with infrastructure and currency-related challenges affecting growth potential.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EKCL.NS - Everest Kanto Cylinder Ltd
Q2 2025 Everest Kanto Cylinder Ltd Earnings Call
Nov 27, 2024 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day. And welcome to the earnings conference call of Everest Canto Cylinder Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone.

I now hand the conference over to Mr Nitesh Jain from CD R India. Thank you and over to you, sir.

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Unidentified_2 [2]
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Thank you, Za.
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