Apex Ecotech Ltd – H2 FY25 Earnings Call Highlights (May 26, 2025) Business & Industry Context: - Apex Ecotech is a leading provider of water and wastewater treatment solutions, emphasizing sustainability and advanced technology across 14 industries, with 250+ projects and over 145 MLD capacity. - Industry drivers include rising water scarcity, industrialization, and stringent regulations, especially the demand for Zero Liquid Discharge (ZLD) and recycling solutions. Financial Performance: - H2 FY25 Revenue grew 127% YoY to ₹4,925 lakh; FY25 revenue increased 34% to ₹7,095 lakh. - H2 EBITDA surged 332% to ₹928 lakh; PAT jumped 351% to ₹701 lakh; EPS up 294% to ₹6.31. - Margin improvement in H2 attributed to project mix and high-value jobs; margin expansion expected to continue. Order Book & Pipeline: - Opening order book for FY26 at ₹55 crore, with execution expected within the current year. - Larger, higher-value orders, e.g., Toyota (~₹40 crore), indicating move toward bigger, complex projects. - Diversified sectoral inflow, including automotive, batteries, pharma, food & beverage; still underpenetrated in textiles and pulp & paper. - International projects in Bangladesh and Vietnam; strategic alliance with Veolia enhances global presence. Operations & Technology: - Use of proprietary, in-house design expertise; no exclusive tech tie-ups, acting as system integrator. - Higher-margin ZLD projects and advanced recycling solutions prioritized. - Revenue primarily from supply (80–90%), with 10–20% from erection/commissioning; receivable days at 45-60. - No material bad debt issues; receivables expected to normalize. Growth & Strategic Focus: - Targeting 25%+ growth driven by high-margin verticals and new sector entries. - Expanding after-sales services for sustainable revenue streams. - Focused on automation, digital project monitoring, and operational scalability. - Selective entry into government and power sectors with higher tech content. Management Outlook & Risks: - Management remains bullish, expecting growth to surpass 25%, with upside from large projects and international expansion. - Cautious about maintaining quality; no significant sector-specific risks. - Emphasis on disciplined growth, transparency, and communication; planning to improve disclosure practices. Key Takeaway: Apex Ecotech is transitioning to larger, technologically advanced projects with a strong order book, international growth potential, and margin expansion driven by project mix and innovation. The management team is optimistic, disciplined, and focused on sustainable, transparent growth.