EPL conducted conference call on 07 November 2022 to discuss the financial results and performance of the company for the quarter ended September'22. Mr. Anand Kripalu – MD & CEO, Mr. M.R. Ramasamy – COO and Mr. Amit Jain – CFO long with other senior management of the company addressed the call

Highlights of the Concall

• The company saw a persistent inflationary environment impacting energy and wages, particularly in the Western world, coupled with higher commodity consumption costs which affected many businesses globally. In addition to this, the quarter saw unprecedented currency devaluations versus the US dollar. While the impact of COVID in China is reducing the zero tolerance policy, it's been hurting day to day business.

• In recent quarters the company has seen exceptional and unprecedented headwinds. These include covid, volatile and inflating raw material prices. high energy costs exacerbated by the Ukraine conflict, wages, and freight. General unprecedented inflation in the western world are devaluing currencies across the board, as these presents new emerging challenges. Volatility and unpredictability is the new norm.

• The company delivered double digit revenue growth at constant currency with significant sequential Ebitda margin improvement. Prevailing currency rates the EPL grew by 9% with strong growth across a AMESA (Africa, Middle East and South Asia, including India) at 16.9%. America at 19.7% and Europe at 8.9%. EAP (East Asia Pacific) delivered a growth of 1.5% despite the COVID related challenges.

• Personal Care & beyond saw strong growth of 17.5%, oral care by 6.7% predominantly affected by EAP.

• The company expects to get huge positive leverage in EAP as things start loosening up in terms of the restrictions. In longer term EAP remains a very big domestic market, probably the largest domestic market in the world.

• Personal Care & beyond which includes beauty & cosmetics, pharma etc, contribution to tube revenue improved to 47.8% which was is 220 basis points better than last year.

• The company is buying the polymers in dollars and it is net importer in India, and these polymer purchases definitely impact to the landed cost of the polymer.

• Excluding the impact of setup costs in Brazil, EBITDA margin for the quarter stood at 16.3% and improvement of 119 basis points and a growth of 22.9% sequentially. EBITDA, including setup costs in Brazil, which are really for long term growth stood at 16.1%.

• Freight costs are coming down which shall help improve Ebitda margins in coming quarters

• Brazil project is very much on track. Construction activity is in full swing and recruitment activity is very much in process in progress. The company will commence commercial production by the end of this fiscal. Total capex in Brazil is Rs 138 crore. EPL is entering into Brazil backed by an anchor customer and many others customers are showing interest in the project.

• EPL focus remains on growing the laminated to market by converting aluminum tubes and rigid.

• Two variants of Patina, Patina pro meand Patina pro vision had been recognized by ACR which is the association of plastics recyclers in the USA. PLatina pro me provides a metallic look to an eco friendly tube, while Platina pro vision is a transparent tube.

• The company targets to double Platina volume in FY23.