Essel Propack’s consolidated quarterly net profit up 24.3%

The company has divested flexible packaging business during the quarter and gain on divestment shown in Exceptional Item at Rs 12.6 crore. On a comparable basis, the company’s consolidated quarterly (Jul 2015-Sep 2015) net profit from continuing business was up 24.3% at Rs 46.7 crore as against Rs 37.5 crore in the corresponding quarter of last year.

On a comparable basis, the consolidated revenue from global operations during the quarter was at Rs 535.3 crore, up at 1.1% as against Rs 529.6 crore in Q2FY15.

Consolidated EBIDTA stood at Rs 114.1 crore, up with margin increase of 3.1 pp over last year.

On a comparable basis, the company’s consolidated half yearly net profit from continuing business was up at 32.5% at Rs 84.9 crore as against Rs 64.0 crore in the corresponding H1FY15.

On a comparable basis, the consolidated revenue from global operation during the half year was at Rs 1059.9 crore, up 4.1% as against Rs 1,018.2 crore in H1FY15.

Ashok Goel, vice-chairman and managing director, Essel Propack, said, “During the quarter, flexible packaging business was divested, in line with our strategic decision to intensify focus on non-oral care opportunities in our tubing business globally including in India. Although the underlying revenue growth is at 6.1%, the impact of RM price reduction pass thru has caused the growth to appear flat. With improved financial health and strong customer engagement, we continue on track with our 20:20:20 mission.”

Essel Propack, part of the USD 2.4 billion Essel Group, with the FY 15 turnover of over USD 380 million, is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and pharma space. Employing over 2700 people representing 25 different nationalities, Essel Propack functions through 21 states of the art facilities and in eleven countries, selling more than 6 billion tubes and continuing to grow every year.

Business highlights for the quarter ended September 30, 2015

Europe expansion is on track with strong revenue growth and margin expansion.

EAP non-oral care thrust driving growth.

Americas revenue growth impacted by lower take off from the key customer in Mexico and pass thru of RM price reduction.

AMESA revenue performance is impacted by the pass thru of RM price reduction. Egypt continued to grow double-digit.

Consolidated results comparison: Q2FY16 vs. Q2FY15:

Net profit for the quarter at Rs 59.3 crore as against Rs. 38.5 crore last year.

Income from operations for the quarter at Rs 535.3 crore as against Rs. 595.2 crore last year.

On the underlying basis, revenue grew by 6.1% for the quarter. However, on account of divestment of flexible packaging business during the quarter and the impact of RM price reduction pass thru the overall reported revenue is 10.1% lower compared to last year.

Net profit includes Rs 12.6 crore, being gain on sale of flexible packaging business during the quarter.

Comparable basis continuing business net profit at Rs 46.7 crore, up by 24.3%.

EBITDA margin at 21.3% as against 18.2%.

EPS for the quarter ended September 30, 2015 was Rs. 3.77 as against Rs 2.45 on Rs 2 face value per share. Excluding divestment gain, EPS stood at Rs 2.97 as against Rs 2.39.

Non-Oral Care revenue share for the quarter 42% as against 41.7% last year.

Consolidated Results comparison: H1Y16 vs. H1Y15:

Net profit for the half year at Rs 97.7 crore as against Rs 64.8 crore last year.

Income from operations for the half year at Rs 1109.9 crore as against Rs 1143.8 crore last year.

Overall revenue for the quarter is lower by 3.0% compared to previous year is impacted by divestment of flexible packaging business during the quarter and RM price reduction pass thru.

Net profit includes Rs 12.6 crore, being gain on sale of flexible packaging business during the half year.

Comparable basis continuing business net profit at Rs 84.9 crore, up by 32.5%.

EBITDA margin at 19.6% as against 17.2%.

EPS for the half year ended September 30, 2015 was Rs 6.22 as against Rs 4.13 on Rs 2 face value per share. Excluding divestment gained, EPS stood at Rs 5.40 as against Rs 4.08.