In a press release shared with WhatPackaging? magazine,the company shared its financial results for the second quarter ending 30 September 2021. HSIL reported a total income of Rs 566 crore compared to Rs 439 crore in the same quarter last year, registering a growth of 29% on a Y-o-Y basis. The company delivered an EBITDA of Rs 91 crore, a growth of 18% on a y-o-y basis, with a EBITDA margin of 16% in Q2 FY22. Its net profit rose by 39% to ₹30 crore in Q2 FY22 from an adjusted net profit of Rs 22 crore in the same quarter last year.

Sandip Somany, vice chairman and managing director of HSIL Limited said: "In Q2 FY2022 with pickup in the economic activities and demand revival, macro-economic scenario improved after the impact of the second wave of Covid. Revenue growth was supported by increased demand for glass bottles visible in all key end-user industries and recovery in the real estate sector driving growth of the building products segment.” "

The packaging products division at HSIL reported revenue from operations of Rs 308 crore, contributing 56% to the total revenue with a growth of 7% on a Y-o-Y basis. The packaging products division saw strong traction with increasing demand for packaged products in the market. EBIT margin improved to 20% in Q2 FY22 from 14% in Q2 FY21. The margin was driven by higher sales, optimised product mix, and enhanced operational efficiencies at the plants.

Somany further added, "HSIL delivered a stellar performance even though one of the glass containers furnaces was shut down during the quarter for relining and the Q2 results clearly demonstrate strength of our businesses. Despite rising fuel prices, HSIL has been able to maintain a healthy operating margin of 16% owing to higher operational efficiencies supported by our distinct capability to use alternative fuels across plants. We have been able to deliver on our ambitious goals owing to our continued investment in our businesses to improve operational efficiency, cost optimisation initiatives and business continuity plans has ensured profitability for us."

Meanwhile the building products division of HSIL delivered revenue from operations of Rs 237 crore, registering a growth of 72%. EBIT margin for the period was 4%. The division saw improvement on a sequential basis driven by sharp recovery in the real estate sector and favorable support from macro drivers.

Readers of WhatPackaging? magazine will recall that HSIL said it will invest Rs 220 crore in a greenfield specialty glass manufacturing facility in Bhongir in Telangana. The specialty glass products will cater to industries such as pharmaceuticals, including vials, and other products such as perfumery, cosmetics and high-end liquor. The facility will be equipped with cutting-edge technology rooted in the principles of digital manufacturing. It will also create job opportunities in the region.

A company spokesperson confirmed that the speciality glass division will be up and running by 2022. It will have a manufacturing capacity of 150 tonnes a day - and include a new furnace with five manufacturing lines spread across 15 acres. In lieu of the global demand for high-end specialty glass bottles, AGI Glaspac would focus on exports to the USA, Australia and European countries.

HSIL's packaging company manufactures and markets various packaging products, including glass containers and Polyethylene Terephthalate (PET) bottles, products & security caps, and closures. The packaging products division has six plants in India, located across Telangana, Uttarakhand, and Karnataka.