PG Technoplast unveils new air conditioning manufacturing facility spanning 2 lakh square feet in Bhiwadi, Rajasthan

PG Technoplast, a wholly-owned subsidiary of PG Electroplast, on Thursday unveiled its new air conditioning manufacturing facility in Bhiwadi, Rajasthan. The company pointed out that the strategic investment is in line with the company’s plan to expand its footprint in the rapidly growing air conditioning market.

The facility, spanning 2 lakh square feet, manufactures a comprehensive range of split air conditioners (ACs) ranging from 0.75 tonnes (T) to 2 T with installed annual capacities of 3,60,000 AC indoor units, 3,60,000 AC outdoor units and 2,50,000 window ACs.

Its production capabilities include manufacturing of AC units, sheet metal components, powder coating plant, heat exchangers, and copper tubing systems. This unit will create additional employment for over 1,000 people.

PG Technoplast claimed it recently became the first beneficiary to receive incentives under the air conditioning components target segment of the government's production-linked incentive (PLI) scheme.

During the third quarter of fiscal year 2024, PG Electroplast’s net sales rose 15.8% year-on-year (YoY) to ₹530 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23.1% YoY to ₹47 crore. Net profit rose 40% to ₹19.23 crore.

The management of the company said it sees increased opportunities from existing and new clients. The firm has provided a sales guidance of ₹1,075 crore for the fourth quarter which will be a growth of 30% over the same period in the previous fiscal. It expects an EBITDA of ₹100 crore which will be a growth of 30% YoY.

The firm expects growth in its product business to be approximately 40% to ₹870 crore in the fourth quarter. PG Electroplast said capex guidance for FY24 for the consolidated entity stands in the range of ₹170-180 crore.

Shares of the company have lost over 17% since the beginning of the year. The stock has gained over 44% in the last one year.