hi everyone,
If someone understands, how the EPR credits works, can you please explain?
The management mentioned in the Q3 FY24, that they missed 6 crores of top line due to CPCB portal not being ready and they also mentioned that they had roughly 600 MT, which gives 100 Rs/ KG for EPR. They also mentioned that 100 rupees can be divided into two parts, one is just EPR fees and other part is the missed quality material. Does that mean that EPR fees would vary so much depending on the material processed during recycling? Can someone please explain this part, if they understand it better?
In the Q2 FY24, Mr Soni had mentioned that they would be able to punch in all the numbers from April 2023 till date and in CPCB portal and would be able to generate EPR credits from April 2023. Is that understanding still correct?
In the three quarters of FY24, they had processed roughly 1800 MT, wherein Mr Soni mentions that company is recycling only mobiles, laptops and medical devices. In the Q4, he mentions that company would do 700 MT, which gives a figure of 2500 MT for FY24.
He is very confident of achieving 8000 MT for FY25 and 18000 MT for FY26. All these numbers, he is confident of processing only within the company. I believe for the company to process such high volumes, they would have to start processing large home goods, which would reduce the margins and also lower EPR fees as mentioned by Mr Soni (when asked why is not processing huge volumes) and it would also increase the transport costs, resulting in much lower EBITDA.
Only hope could be that high margins and high EPR of recycling mobiles, laptops and medical devices could act as a cushion for the comparatively lower margins and costs of recycling heavy goods
Disc: Invested and cautiously optimistic and nervous about valuations
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