Praj Industries' subdued financial performance in Q3 was a one-off, driven by a shift in order mix, according to Managing Director and Chief Executive Officer Shishir Joshipura. The company expects growth to bounce back in the upcoming orders, he told NDTV Profit.
Praj Industries Ltd. reported a 41.6% year-on-year drop in its consolidated net profit at Rs 41.1 crore in Q3, against Rs 70.4 crore in the same quarter last year. While revenue rose 2.9% to Rs 853 crore, Ebitda dropped 25.4% to Rs 72.7 crore YoY.
“It was a very different kind of a quarter from what has been the norm so far. We have had a bit of a challenge in this particular quarter because the order mix was slightly different, compared to what we have done in previous times,” Joshipura said.
The top executive assured that the issue was specific to the quarter and that the company's growth trajectory remains unchanged.
“If you look at nine months results, our margins are 500 basis points up comparatively speaking. So it's just a quarter thing. For the business, I don't think that there is any reason for us to believe that any vector of the story has changed. It still remains intact,” he said.
Joshipura was confident that the growth in numbers would return to the company in the upcoming quarters, fuelled by a robust order book.
“We expect the growth to return to the numbers as well...I have absolutely no doubt about it,” he said.
“Our order book is a clear foreteller of fortune in the sense that it is increasing quarter on quarter for the last three and the most important part is, it is increasing from what we have targeted as a business strategy,” the Praj Industries MD added.
The company's order intake in Q3 was valued at Rs 1,053 crore, and as of Dec. 31, 2024, the total order book stood at Rs 4,349 crore.
Joshipura stated that the growth in the order book was not accidental, but the result of a strategic effort.
“It's not an accidental growth. It's something that is strategically built, and there is absolutely no doubt that we will go back on the growth path,” he said.
“Our order booking has actually ticked up. For the last three quarters, we are continuously improving our order booking, which is good for our business as we move forward. It allows us to get the growth back into the business," Joshipura added.
Shares of Praj Industries Ltd. dipped 6.5% to touch an intraday low Rs 594.60 on the NSE on Friday. The stock was down 0.09% at Rs 635.30 apiece at 12:35 p.m., while benchmark Nifty 50 was up 0.85% at 23,447.35 points.
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