Agi Greenpac stock gains 5% after Q2FY25 net profit surges 28% YoY

Shares of packaging company Agi Greenpac surged 4.87 per cent at Rs 972.80 a piece on the BSE after the company reported its second quarter earnings for the financial year 2024-25 (Q2FY25). 

Agi Greenpac reported a 28.4 per cent year-on-year (Y-o-Y) increase in net profit for the quarter ending September 30, 2024, reaching Rs. 72.1 crore, compared to Rs. 56.1 crore in the same period last year. The company’s total revenue slipped marginally by 1.4 per cent Y-o-Y, rising to Rs. 611 crore from Rs. 619 crore in Q2 of the previous fiscal year. 

The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 19.7 per cent, reaching Rs. 166 crore, up from Rs. 138 crore in the corresponding quarter of the previous year. The Ebitda margin came in at 28 per cent, the company said in a statement.  

In the first half of FY25, AGI Greenpac Limited reported a revenue from operations of Rs. 1,166 crore. The company's Ebitda stood at Rs. 313 crore, reflecting a 12 per cent year-on-year growth with a margin of 27 per cent. Profit after tax (PAT) reached Rs. 135 crore, marking a 13 per cent increase compared to the same period last year. 

Despite facing challenges due to scheduled furnace relining, AGI Greenpac maintained a high capacity utilisation of approximately 93 per cent, the company said. Additionally, the company focused on cost efficiencies, streamlining production processes, and enhancing supply chain management, which contributed to improved margins. 

 

“Our strategic emphasis on operational efficiencies, optimal capacity utilisation, customer engagement, new product launches, and a premium product mix has significantly improved our margins. We remain optimistic about the future and are confident that our strategy will continue to deliver strong results going forward,” said Sandip Somany, Chairman and Managing Director of Agi Greenpac.  The company is involved in the manufacturing and sale of container glass bottles, PET bottles, and security caps and closures, which fall under its Packaging Products segment. 

The company has a total market capitalisation of Rs 5,984.83 crore. Agi Greenpac’s shares are trading at a price to earnings multiple of 22.48 times and at an earning per share of Rs 41.27.  

At 11:36 PM; the stock of the company gave up all its gains and slipped in red, falling 0.27 per cent at Rs 925.05 per share. By comparison, the BSE Sensex was down by 0.15 per cent at 79,418.53.