Why Did Apex Ecotech’s Q4 Net Profit Plummet by 18%?
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Synopsis
Apex Ecotech Limited faces challenges in Q4 FY25, with an 18.2% drop in net profit and a 30.6% decrease in revenue. Despite setbacks, the company sees growth potential in water treatment solutions and environmental compliance.
Key Takeaways
- Net profit fell by 18.2% in Q4 FY25.
- Revenue from operations decreased by 30.6%.
- Expenses dropped by 32.8%, softening profit impacts.
- Strong revenue growth of 126.97% in H2 FY25.
- Company aims to capitalize on environmental compliance trends.
Mumbai, May 29 (NationPress) Apex Ecotech Limited has disclosed a disappointing performance for the fourth quarter of FY25, as the company's net profit fell by 18.2% year-on-year (YoY) to Rs 7 crore in Q4, a decline from Rs 8.56 crore in the corresponding period last year (Q4 FY24).
Revenue from operations experienced a significant decrease of 30.6%, amounting to Rs 49.25 crore compared to Rs 70.95 crore in Q4 FY24, based on its stock exchange announcement.
Total income for the quarter also saw a 30.5% drop to Rs 49.75 crore, while total expenses reduced by 32.8% to Rs 40.45 crore in the same timeframe.
Despite the revenue decline, the cut in expenses cushioned the adverse effects on profits.
However, reflecting on the overall performance for the fiscal year, Anuj Dosajh, Chairman and Managing Director of Apex Ecotech, mentioned that FY25 was a pivotal year for the company.
He emphasized remarkable growth in the second half of the year, with revenue from core operations soaring by 126.97% to Rs 49.25 crore.
“The company’s EBITDA for H2 FY25 surged by 331.85% to Rs 8.98 crore, with a marked enhancement in EBITDA margin to 18.23%,” stated Dosajh.
For the entire fiscal year FY25, Apex Ecotech recorded a 33.67% increase in revenue from operations to Rs 70.95 crore.
EBITDA rose by 24.5% to Rs 11.06 crore, and net profit increased by 29.11% to Rs 8.56 crore, driven by effective management and rising demand for its water and wastewater treatment solutions.
The projects include advanced Zero Liquid Discharge (ZLD) and water recycling systems designed to assist industries in minimizing water waste and complying with environmental regulations.
Looking forward, the company remains hopeful about its growth trajectory. “We aspire to further harness the global shift towards environmental compliance and water reuse,” Dosajh remarked.
Apex Ecotech Limited is a certified engineering firm specializing in water and wastewater treatment solutions, which encompass effluent treatment plants, membrane recycling systems, and ZLD technologies for industrial applications.
Point of View
It is essential to remain objective while reporting on Apex Ecotech's financial results. The company's struggles in Q4 FY25 highlight the challenges it faces within a competitive market. However, the reported growth in the second half of the year indicates a potential rebound. It is vital to keep a close watch on their strategic initiatives in the water treatment sector, as they align with global sustainability trends.
NationPress
21/07/2025
Frequently Asked Questions
What caused Apex Ecotech's Q4 net profit decline?
The decline in net profit can be attributed to a significant drop in revenue from operations, which fell by 30.6% compared to the previous year.
How did the company manage its expenses?
Apex Ecotech successfully reduced its total expenses by 32.8%, which helped mitigate the impact of lower revenue on profits.
What is the outlook for Apex Ecotech moving forward?
The company remains optimistic about future growth, particularly in leveraging the increasing global focus on environmental compliance and water reuse.
What are the key projects Apex Ecotech is involved in?
The company is focusing on advanced Zero Liquid Discharge (ZLD) systems and water recycling solutions aimed at reducing industrial water waste.
How did Apex Ecotech perform over the full financial year FY25?
For the entire fiscal year FY25, Apex Ecotech reported a 33.67% increase in revenue and a 29.11% rise in net profit, reflecting efficient execution and rising demand.
