Capitaline

Results 12-Feb-23

Analysis

Esab India

Net up 91% on higher sales and 610 bps jump in OPM

Standalone net sales (including other operating income) of Esab India for the quarter ended Dec 2022 has increased 18.01% to Rs 267.39 crore. Operating profit margin has jumped from 12.01% to 18.11%, leading to 77.99% rise in operating profit to Rs 48.43 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 51.52% to 44.80%. Purchase of finished goods cost rose from 12.77% to 16.42%. Employee cost decreased from 10.08% to 8.57%. Other expenses fell from 13.58% to 12.49%. Other income up 116.44% to Rs 3.16 crore. PBIDT rose 79.94% to Rs 51.59 crore. Provision for interest up 350% to Rs 0.09 crore. PBDT rose 79.76% to Rs 51.5 crore. Provision for depreciation rose 3.17% to Rs 2.93 crore. Profit before tax grew 88.18% to Rs 48.57 crore. Provision for tax was expense of Rs 12.26 crore, compared to Rs 6.84 crore. Effective tax rate was 25.24% compared to 26.50%. Profit after tax rose 91.41% to Rs 36.31 crore.

Nine month performance

Net sales (including other operating income) of Esab India has increased 25.11% to Rs 789.12 crore.

Operating profit margin has jumped from 14.15% to 16.47%, leading to 45.62% rise in operating profit to Rs 129.97 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.16% to 46.59%. Purchase of finished goods cost rose from 14.32% to 15.78%. Employee cost decreased from 10.47% to 8.96%. Other expenses fell from 13.03% to 12.39%.

Other income up 10.88% to Rs 4.79 crore. PBIDT rose 44.02% to Rs 134.76 crore. Provision for interest fell 9.09% to Rs 0.2 crore.

PBDT rose 44.15% to Rs 134.56 crore. Provision for depreciation rose 3.32% to Rs 8.72 crore. Profit before tax grew 48.20% to Rs 125.84 crore. Provision for tax was expense of Rs 32.02 crore, compared to Rs 21.93 crore. Effective tax rate was 25.45% compared to 25.83%.Profit after tax rose 48.97% to Rs 93.82 crore.

Others

The Company has declared a second Interim Dividend of Rs. 28/-per equitv share of Rs.10/· each at the meeting of Board of Directors held on February10, 2023 for the flnanclal year 2022-23. This is in addition to an Interim dividend of Rs 30/-per equity share of Rs.10/-each was already paid by the company on December 9, 2022.

Promoters’ stake was 73.72% as of 31 December 2022 ,compared to 73.72% as of 31 December 2021 .

Esab India : Standalone Results

	Quarter ended			Year to Date			Year ended
Particulars	202212	202112	Var.(%)	202212	202112	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	267.39	226.58	18.01	789.12	630.72	25.11	896.30	681.16	31.58
OPM (%)	18.11	12.01	610 bps	16.47	14.15	232 bps	13.44	11.96	148 bps
OP	48.43	27.21	77.99	129.97	89.25	45.62	120.50	81.47	47.91
Other Inc.	3.16	1.46	116.44	4.79	4.32	10.88	4.68	11.18	-58.14
PBIDT	51.59	28.67	79.94	134.76	93.57	44.02	125.18	92.65	35.11
Interest	0.09	0.02	350.00	0.2	0.22	-9.09	0.29	0.41	-29.27
PBDT	51.50	28.65	79.76	134.56	93.35	44.15	124.89	92.24	35.40
Depreciation	2.93	2.84	3.17	8.72	8.44	3.32	11.33	11.71	-3.25
PBT	48.57	25.81	88.18	125.84	84.91	48.20	113.56	80.53	41.02
PBT before EO	48.57	25.81	88.18	125.84	84.91	48.20	113.56	80.53	41.02
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	48.57	25.81	88.18	125.84	84.91	48.20	113.56	80.53	41.02
Taxation	12.26	6.84	79.24	32.02	21.93	46.01	29.25	21.24	37.71
PAT	36.31	18.97	91.41	93.82	62.98	48.97	84.31	59.29	42.20
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	36.31	18.97	91.41	93.82	62.98	48.97	84.31	59.29	42.20
EPS (Rs)*	23.59	12.33	91.41	60.96	40.92	48.97	54.78	38.53	42.20

* EPS is on current equity of Rs 15.39 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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