Race Eco Chain Ltd. · NSE:RACE
Race Eco Chain — Q1 FY25 Earnings Presentation
27 slides from Race Eco Chain's earnings presentation, Aug 21, 2024
Slide 1: Exchange filing cover letter for Q1 FY25 investor presentation
Dated: 21st August, 2024 Bombay Stock Exchange Limited National Stock Exchange Limited Department of Corporate Services, Listing Department Phiroze Jeejee Bhoy Towers, Exchange Plaza,C-1, Block-G, Dalat Street, Mumbai-400001 Bandra-Kurla Complex, Mumbai 400051 Scrip Code: 537785 Symbol: RACE Subject
Slide 2: Earnings Presentation Q1 FY25
Earnings Presentation Q1 FY25
Slide 3: Initiatives taken to waste industry
Initiatives taken to waste industry PAN India Network Washing Plants Community Engagement A comprehensive network for Setting up washing plants across Hosted India’s first Talent recognition Waste Suppliers ensuring India focusing on B2B (Bottle to events for Waste Supplier code named efficient wast
Slide 4: Q1FY25: Performance Highlights (QoQ)
Q1FY25 : Performance Highlights (Standalone) (QoQ) ~28,660 MT SNAPSHOTS Operating Revenue EBITDA PAT ₹ 86.17 crore ₹ 1.42 crore ₹ 0.36 crore This is the quantum of waste (in tonnes) that we aggregated during Q1FY25. India generates more than 62mn 8% QoQ 39% QoQ 53% QoQ tons of municipal solid waste
Slide 5: Q1FY25: Performance Highlights (YoY)
Q1FY25 : Performance Highlights (Standalone) (YoY) ~28,660 MT SNAPSHOTS Operating Revenue EBITDA PAT This is the quantum of waste (in tonnes) that we aggregated during Q1FY25. ₹86.17 crore ₹1.42 crore ₹0.36 crore India generates more than 62mn 26% YoY 22% YoY 60% YoY tons of municipal solid waste an
Slide 6: India Plastic Waste Recycling Industry
India Plastic Q1FY25 : Waste Industry Performance Recycling Highlights Indian: Plastic waste Market (Mn Tonnes) (STANDALONE) 23.7 10.8 FY23 FY29F India’s plastic waste recycling market size is estimated to be Favourable Regulations 10.8 Million Tons in 2023. Going forward, the market is expected to
Slide 7: Q1FY25: Plastic Packaging Waste Business Highlights (QoQ)
Q1FY25: Plastic Packaging Waste Business Highlights (STANDALONE) (QoQ) SNAPSHOTS Revenue Market Share* (PET Waste) ~19,079 MT ₹78.77 crore 11.67% 167 bps QoQ 15% QoQ This is the quantum of plastic waste (in tonnes) that we aggregated during Q1FY25. Plastic Waste EBIT Registering a growth of 7% QoQ A
Slide 8: Q1FY25: Plastic Packaging Waste Business Highlights (YoY)
Q1FY25: Plastic Packaging Waste Business Highlights (STANDALONE) (YoY) SNAPSHOTS Revenue Market Share* (PET Waste) ~19,079 MT ₹78.77 crore 11.67% 16% YoY 232bps YoY This is the quantum of plastic waste (in tonnes) that we aggregated during Q1FY25. Plastic Waste EBIT Aggregated (MT) ₹1.59 crore 2.02%
Slide 9: India Biofuel Industry
India Biofuel Industry 1.7 4.0 7% According to research report published by “Transparency Market research”, the Indian biomass industry was valued around US $ 1.7 Mandatory 5% Bn in 2019 & is expected to grow @ CAGR of 8% to reach US$ 4 bn Biomass co-firing Indian Biomass Rate for Thermal by 2030. M
Slide 10: Q1FY25: Biofuel Business Highlights (QoQ)
Q1FY25: Biofuel Business Highlights (Standalone) (QoQ) SNAPSHOTS ~9,581 MT Revenue EBIT Biofuel Aggregated (MT) ₹6.82 crore ₹0.08 crore 13,275 9,581 This is the quantum of 1.19% EBIT Margin Biomass (in tonnes) that we aggregated during Q1FY25. 29% QoQ 275 bps QoQ Q4FY24 Q1FY25 9
Slide 11: Q1FY25: Biofuel Business Highlights (YoY)
Q1FY25: Biofuel Business Highlights (Standalone) (YoY) SNAPSHOTS ~9,581 MT Revenue (Q1FY25) EBIT (Q1FY25) This is the quantum of ₹6.82 crore ₹0.08 crore 1.19% EBIT Margin Biomass (in tonnes) that we aggregated during Q1FY25. 59% YoY 54 bps YoY 10
Slide 12: Our Major Biofuel Clients
9 @RACE Our Major Biofuel Clients SUN PHARMA (porientbell =] | L PEPSICO fr» VISAKA Q Reliance Industries Limited tiles C.K Birla Group OCT ORIENT CRAFT LIMITED usta» CEAT @EAK RAPD CONSTRUCTION-EXCEEDING EXPECTATIONS aS By PATANJALL esk] tas Undlovew Limited. Ms BIRLA GROUP woes a1
Slide 13: Standalone Income Statement
Standalone Income Statement Particulars Q1FY25 Q4FY24 Q1FY24 FY24 Income Statement INR Cr Revenue from Operations 86.17 79.47 110.74 338.50 Operating Costs 84.75 78.44 108.81 332.97 Operating Profit (EBITDA) 1.42 1.03 1.93 5.53 Other Income 0.15 0.44 0.03 0.67 Finance Costs 0.83 0.75 0.55 2.84 Depre
Slide 14: Consolidated Income Statement
Consolidated Income Statement Our Company has acquired 65% equity Particulars Q1FY25 Q4FY24 Q1FY24 FY24 shares of India Polymers Pvt Ltd. Income Statement INR Cr Pursuant to said acquisition, India Polymers Pvt Ltd has become subsidiary of our Revenue from Operations 86.44 85.17 110.74 347.48 Compan
Slide 15: Performance Review
Performance Review Scenario: FY24 Strategic Shift in FY25: • In FY24, we implemented an aggressive growth strategy • Recognizing the need for a more balanced approach to growth and profitability, we've implemented several key changes for FY25: focused on expanding our market share through extended c
Slide 16: Performance Review: Impact and Outlook
Performance Review Impact and Outlook: • The transition to our new strategy has presented initial challenges, resulting in an YoY decline in top-line during Q1FY25. Despite these roadblocks, gradually we are observing some positive outcomes: • Market Reception: Our focus on sustainability is resonat
Slide 17: The Way Ahead for RACE: Demerger
The Way Ahead for RACE: DEMERGER To make operations more focused and making capital allocation more efficient, The Board of the company has proposed the demerger of existing business segments of RACE into three entities: Proposed Demerger of Business Segments Plastic Biomass Recycled packaging Briqu
Slide 18: The Way Ahead for RACE: Organic Growth
The Way Ahead for RACE : Organic Growth Strategic Investment in Rudra Ecovation: Enhancing Sustainability and Market Position 1 Investment Highlights : • Strategic partnership with Rudra Ecovation, a leading Indian PET bottle recycler specializing in sustainable textiles • Secured long-term exclusiv
Slide 19: The Way Ahead for RACE: Organic Growth
The Way Ahead for RACE : Organic Growth Strategic Alliance with Supply Chain Dedicated Collection Sustainability & Market Ganesha Ecosphere Transformation Centers Demand India's largest PET This partnership will We plan to establish With the onset of mandatory waste recycler, revolutionize India's w
Slide 20: Organizing the Unorganized
Bridging the Sustainability Gap: Organizing the Unorganized Current Challenge: The majority of India's recycled waste is managed by the informal sector, often lacking adherence to health, safety, and governance standards. Regulatory Shift: SEBI's mandates are driving India towards ESG compliance, wi
Slide 21: Opportunities & Challenges
Race at the forefront for upcoming Opportunities & Challenges Growing demand for ESG EPR norms require 1/3rd of Technology will play a OPPORTUNITY Bottle to Bottle Manufacturing. complaint and organized recycled material to be huge role in organizing Waste Supply Chain used for packaging material th
Slide 22: Our Business Model
Our Business Model Race Operating Process Suppliers Collection of waste Transfer of waste to Material Seggerated Using by RACE Material Recovery Facility state of the art Technology Our Business Segments Plastic Aggregating & supplying the plastic packaging packaging waste to the recyclers through o
Slide 23: Our Strategic Pillars of Excellence
Our Strategic Pillars of Excellence ESG Focused Organizing the Unorganized Voluntary adoption to SEBI’s BRSR Suppliers’ Due Diligence End to End Digitization Certifications Traceability initiative via RACE App Innovation & Technology 22
Slide 24: Progressing towards digitization via RACE App
Progressing towards digitization via RACE APP • Our company is strongly committed to enhancing its technological capabilities. • Further, in alignment with our vision to optimize the overall efficiency and digitize the existing value chain, our organization has developed the "RACE App“ currently ava
Slide 25: Race Participated at Global Conclave on Plastics Recycling and Sustainability
Announcement Race Participated at Global Conclave on Plastics Recycling and Sustainability(GCPRS) RACE participated in the GCPRS, A four-day event, renowned for its insights into cutting-edge trends and business opportunities in plastic recycling. Race Eco Chain Ltd recently participated in the Glob
Slide 26: Our Progress towards ESG Journey
Our Progress towards ESG Journey “Progress Towards Business Sustainability” Voluntary filing of SEBI BRSR: Our Undergoing ESG assessment, our company has recently Here are some of our ongoing company has voluntarily adopted received a score of 58 out of 100 based on CareEdge initiatives aimed at est
Slide 27: Thank You
Thank You www.raceecochain.com