Everest Kanto Cylinder Limited (EKC) has kicked off the fiscal year with a strong financial performance in the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

• Consolidated revenue reached Rs. 386.90 crore, marking a 12.9% year-on-year increase
• Consolidated EBITDA surged by 47.8% to Rs. 61.30 crore, with an improved EBITDA margin of 15.8%
• Profit After Tax (PAT) saw a substantial rise of 84.9%, reaching Rs. 51.60 crore, including an exceptional gain of Rs. 12.60 crore

Segment-wise Performance

India Operations

US Operations

Order Book and Future Outlook

EKC maintains a healthy order book, with the US division holding orders worth USD 70 million and the India operations having an order book of approximately Rs. 60.00 crore. The management is optimistic about the company's growth trajectory, projecting a 10-15% revenue growth for the year with conservative EBITDA margins of 13-14%.

Expansion Plans

The company is actively expanding its production capabilities with two new state-of-the-art facilities:

1. Mundra, India:

   • Capacity: 200,000 cylinders
   • Investment: Rs. 125.00 crore
   • Expected commissioning: Last quarter of FY26

2. Egypt:

   • Capacity: 120,000 cylinders
   • Investment: Rs. 120.00 crore
   • Expected commissioning: Last quarter of FY26

These new facilities are anticipated to enhance EKC's supply capabilities significantly from FY27 onwards.

Market Drivers and Opportunities

EKC is benefiting from favorable government policies promoting CNG adoption, green energy initiatives, and high-tech manufacturing. The company is witnessing emerging opportunities in sectors such as compressed biogas, semiconductors, and green hydrogen, where its high-pressure gas cylinders are finding new applications.

Management Commentary

Puneet Khurana, Managing Director of EKC, commented on the results during the earnings call, stating, "The fiscal year has begun on a strong note for EKC. With healthy demand visibility, upcoming capacity additions, a widening set of applications for our products, and a strong balance sheet position, we are well-positioned to capture the next phase of growth and continue delivering value to our stakeholders."

Challenges

Despite the strong performance, EKC faces a contingent GST liability of Rs. 352.00 crore. The company has appealed to the High Court and made representations to the government, expressing confidence in a favorable resolution of this classification matter.

In conclusion, Everest Kanto Cylinder Limited's Q1 results demonstrate robust growth and operational efficiency. With strategic expansions underway and a positive outlook in key markets, the company appears well-positioned for sustained growth in the high-pressure gas cylinder industry.

Everest Kanto Cylinder Limited, India's largest manufacturer of high-pressure seamless gas cylinders, has reported a robust financial performance for the first quarter. The company's consolidated profit after tax skyrocketed by 85% year-over-year, driven by strong revenue growth and an exceptional gain from a US tax refund.

Financial Highlights

• Consolidated revenue from operations reached ₹38,688.00 lakhs, marking a 13% increase from ₹34,280.00 lakhs in the same quarter last year.
• Consolidated profit after tax surged to ₹5,158.00 lakhs, up 85% from ₹2,790.00 lakhs in the previous year's corresponding quarter.
• Earnings per share (EPS) rose significantly to ₹4.60 from ₹2.50 year-over-year.
• The company reported an exceptional gain of ₹1,263.00 lakhs from an employee retention credit tax refund received by its US subsidiary.

Segment Performance

Everest Kanto Cylinder's operations span across multiple geographical segments:

Standalone Performance

On a standalone basis, the company also demonstrated strong growth:

• Revenue from operations increased by 21% to ₹23,698.00 lakhs.
• Standalone profit after tax more than doubled to ₹2,609.00 lakhs, representing a 123% increase.
• Standalone EPS improved to ₹2.33 from ₹1.04 in the previous year.

Management Commentary

Pushkar Khurana, Chairman and Executive Director of Everest Kanto Cylinder Limited, stated, "We are pleased to report a strong start to the fiscal year. Our consolidated performance reflects the robust demand for our products across various markets and the operational efficiencies we've achieved."

Exceptional Item

The company's US subsidiary, CP Industries Holdings Inc., received a significant boost from a tax refund. The ₹1,263.00 lakhs employee retention credit received from the US Treasury contributed to the exceptional performance this quarter.

Outlook

With a diverse geographical presence and a strong product portfolio, Everest Kanto Cylinder is well-positioned to capitalize on the growing demand for high-pressure seamless gas cylinders. The company's focus on manufacturing cylinders for industrial gases, CNG, and other specialized applications aligns well with the increasing global emphasis on clean energy solutions.

As Everest Kanto Cylinder continues to strengthen its market position, the company's performance in the coming quarters will be closely watched by industry observers and stakeholders alike.