Capitaline

Results 11-Nov-23

Analysis

Esab India

Sales up 9%, net up 20%

Standalone net sales (including other operating income) of Esab India for the quarter ended Sep 2023 has increased 9.29% to Rs 303.14 crore. Operating profit margin has jumped from 16.16% to 17.95%, leading to 21.37% rise in operating profit to Rs 54.40 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.69% to 45.13%. Purchase of finished goods cost fell from 16.08% to 14.93%. Employee cost decreased from 8.77% to 8.68%. Other expenses rose from 12.11% to 13.21%. Other income up 13.86% to Rs 1.15 crore. PBIDT rose 21.21% to Rs 55.55 crore. Provision for interest up 100% to Rs 0.1 crore. PBDT rose 21.12% to Rs 55.45 crore. Provision for depreciation rose 19.30% to Rs 3.4 crore. Profit before tax grew 21.24% to Rs 52.05 crore. Provision for tax was expense of Rs 13.64 crore, compared to Rs 11.02 crore. Effective tax rate was 26.21% compared to 25.67%. Profit after tax rose 20.37% to Rs 38.41 crore.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Esab India for the half year ended Sep 2023 has increased 15.66% to Rs 601.39 crore. Operating profit margin has jumped from 15.34% to 18.66%, leading to 40.61% rise in operating profit to Rs 112.19 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 47.69% to 46.46%. Purchase of finished goods cost fell from 15.50% to 13.77%. Employee cost decreased from 9.19% to 8.50%. Other expenses rose from 12.37% to 12.55%.

Other income up 8.58% to Rs 3.67 crore. PBIDT rose 39.31% to Rs 115.86 crore. Provision for interest up 72.73% to Rs 0.19 crore. Loan funds rose to Rs 3.70 crore as of 30 September 2023 from Rs 1.82 crore as of 30 September 2022. Inventories rose to Rs 118.77 crore as of 30 September 2023 from Rs 106.09 crore as of 30 September 2022. Sundry debtors were higher at Rs 180.56 crore as of 30 September 2023 compared to Rs 134.74 crore as of 30 September 2022. Cash and bank balance declined from Rs 62.11 crore as of 30 September 2022 to Rs 54.72 crore as of 30 September 2023. Investments declined from Rs 25.16 crore as of 30 September 2022 to Rs 9.45 crore as of 30 September 2023.

PBDT rose 39.26% to Rs 115.67 crore. Provision for depreciation rose 16.41% to Rs 6.74 crore. Fixed assets increased to Rs 119.57 crore as of 30 September 2023 from Rs 94.91 crore as of 30 September 2022. Intangible assets increased from Rs 0.45 crore to Rs 2.21 crore. Profit before tax grew 40.97% to Rs 108.93 crore. Provision for tax was expense of Rs 28.14 crore, compared to Rs 19.76 crore. Effective tax rate was 25.83% compared to 25.57%.Profit after tax rose 40.48% to Rs 80.79 crore.

Interim dividend & others

The Board of Directors of the Company at its meeting held today on 10th November 2023 has declared interim dividend of Rs. 32/- per equity share of Rs. 10/- each (320%) for the financial year ending 31st March 2024 resulting in an outflow of Rs. 49,25,76,640/- (subject to TDS). The same will be paid on or before 8th December 2023.

Loan funds rose to Rs 3.70 crore as of 30 September 2023 from Rs 1.82 crore as of 30 September 2022. Inventories rose to Rs 118.77 crore as of 30 September 2023 from Rs 106.09 crore as of 30 September 2022. Sundry debtors were higher at Rs 180.56 crore as of 30 September 2023 compared to Rs 134.74 crore as of 30 September 2022. Cash and bank balance declined from Rs 62.11 crore as of 30 September 2022 to Rs 54.72 crore as of 30 September 2023. Investments declined from Rs 25.16 crore as of 30 September 2022 to Rs 9.45 crore as of 30 September 2023. Fixed assets increased to Rs 119.57 crore as of 30 September 2023 from Rs 94.91 crore as of 30 September 2022. Intangible assets increased from Rs 0.45 crore to Rs 2.21 crore.

Esab India : Standalone Results

	Quarter ended			Year to Date			Year ended
Particulars	202309	202209	Var.(%)	202309	202209	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	303.14	277.38	9.29	601.39	519.98	15.66	1,090.80	896.30	21.70
OPM (%)	17.95	16.16	179 bps	18.66	15.34	331 bps	17.11	13.44	367 bps
OP	54.40	44.82	21.37	112.19	79.79	40.61	186.68	120.50	54.92
Other Inc.	1.15	1.01	13.86	3.67	3.38	8.58	7.80	4.68	66.67
PBIDT	55.55	45.83	21.21	115.86	83.17	39.31	194.48	125.18	55.36
Interest	0.1	0.05	100.00	0.19	0.11	72.73	0.31	0.29	6.90
PBDT	55.45	45.78	21.12	115.67	83.06	39.26	194.17	124.89	55.47
Depreciation	3.4	2.85	19.30	6.74	5.79	16.41	11.88	11.33	4.85
PBT	52.05	42.93	21.24	108.93	77.27	40.97	182.29	113.56	60.52
PBT before EO	52.05	42.93	21.24	108.93	77.27	40.97	182.29	113.56	60.52
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	52.05	42.93	21.24	108.93	77.27	40.97	182.29	113.56	60.52
Taxation	13.64	11.02	23.77	28.14	19.76	42.41	46.61	29.25	59.35
PAT	38.41	31.91	20.37	80.79	57.51	40.48	135.68	84.31	60.93
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	38.41	31.91	20.37	80.79	57.51	40.48	135.68	84.31	60.93
EPS (Rs)*	24.96	20.73	20.37	52.50	37.37	40.48	88.16	54.78	60.93

* 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

Previous News

Esab India to conduct board meeting
( Corporate News - 01-Mar-24 11:04 )

Esab India fixes record date for interim dividend
( Market Beat - Reports 15-Nov-23 12:43 )

Esab India
( Results - Analysis 12-Nov-22 16:17 )

Esab India standalone net profit rises 25.80% in the June 2022 quarter
( Results - Announcements 13-Aug-22 08:15 )

Esab India schedules board meeting
( Corporate News - 31-Dec-21 12:02 )

Esab India schedules board meeting
( Corporate News - 01-Jul-23 09:45 )

Esab India
( Results - Analysis 14-Aug-19 10:29 )

Esab India
( Results - Analysis 11-Feb-21 09:22 )

ESAB India director resigns
( Corporate News - 02-Jun-23 16:37 )

Esab India to table results
( Corporate News - 30-Jun-22 16:24 )

Esab India
( Results - Analysis 10-Feb-20 11:05 )