Capitaline

Results 29-Jul-21

Analysis

EPL

Margin pressure

EPL consolidated net sales increased 7.77% to Rs 799.1 crore in Q1FY22 compared to Q1FY21. Sales of AMESA segment has gone up 28.55% to Rs 281.90 crore (accounting for 33.96% of total sales). Sales of EAP segment has gone up 1.98% to Rs 206.00 crore (accounting for 24.81% of total sales). Sales of AMERICAS segment rose 8.76% to Rs 163.90 crore (accounting for 19.74% of total sales). Sales of EUROPE segment has gone down 9.76% to Rs 178.40 crore (accounting for 21.49% of total sales). Inter-segment sales rose Rs 28.50 crore to Rs 31.40 crore.

Operating profit margin has slumped from 19.77% to 18.13%, leading to 1.16% decline in operating profit to Rs 144.90 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 42.77% to 43.59%. Employee cost decreased from 19.62% to 19.01%. Other expenses rose from 17.99% to 19.71%.

Other income rose 3.92% to Rs 5.3 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 6.12% to Rs 87.40 crore. PBIT of AMESA segment rose 94.38% to Rs 31.10 crore (accounting for 35.58% of total PBIT). PBIT of EAP segment fell 21.23% to Rs 34.50 crore (accounting for 39.47% of total PBIT). PBIT of AMERICAS segment fell 22.73% to Rs 11.90 crore (accounting for 13.62% of total PBIT). PBIT of EUROPE segment fell 44.69% to Rs 9.90 crore (accounting for 11.33% of total PBIT).

PBIT margin of AMESA segment rose from 7.30% to 11.03%. PBIT margin of EAP segment fell from 21.68% to 16.75%. PBIT margin of AMERICAS segment fell from 10.22% to 7.26%. PBIT margin of EUROPE segment fell from 9.05% to 5.55%. Overall PBIT margin fell from 12.10% to 10.53%.

Provision for interest fell 45.06% to Rs 8.9 crore. Provision for depreciation rose 6.91% to Rs 61.9 crore.

Profit before tax grew 2.32% to Rs 79.40 crore. Share of profit/loss were nil in both the periods.

The company reported nil EO items during the quarter compared to EO expense of Rs 16.1 crore representing impairment of assets and other associated costs on account of scaling down the business of one of the overseas operating units. PBT after EO was up 29% to Rs 79.1 crore.

Provision for tax was expense of Rs 18.9 crore, compared to Rs 15.9 crore. Effective tax rate was 23.89% compared to 25.85%.

Minority interest increased 91.67% to Rs 2.30 crore. Net profit attributable to owners of the company increased 30.41% to Rs 57.90 crore.

Full year results analysis

Net sales (including other operating income) of EPL has increased 11.96% to Rs 3091.6 crore. Sales of AMESA segment has gone up 6.11% to Rs 993.40 crore (accounting for 31.08% of total sales). Sales of EAP segment has gone up 25.52% to Rs 782.00 crore (accounting for 24.47% of total sales). Sales of AMERICAS segment rose 5.38% to Rs 652.10 crore (accounting for 20.40% of total sales). Sales of EUROPE segment has gone up 13.50% to Rs 768.60 crore (accounting for 24.05% of total sales). Inter-segment sales rose Rs 94.60 crore to Rs 105.70 crore.

Operating profit margin has slumped from 20.19% to 19.77%, leading to 9.61% rise in operating profit to Rs 611.10 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 42.42% to 41.75%. Employee cost increased from 19.07% to 19.64%. Other expenses rose from 18.48% to 18.81%.

Other income rose 9.02% to Rs 14.5 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 15.25% to Rs 385.40 crore. PBIT of AMESA segment rose 0.65% to Rs 108.30 crore (accounting for 28.10% of total PBIT). PBIT of EAP segment rose 43.69% to Rs 143.40 crore (accounting for 37.21% of total PBIT). PBIT of AMERICAS segment fell 19.82% to Rs 71.20 crore (accounting for 18.47% of total PBIT). PBIT of EUROPE segment rose 63.61% to Rs 62.50 crore (accounting for 16.22% of total PBIT).

PBIT margin of AMESA segment fell from 11.49% to 10.90%. PBIT margin of EAP segment rose from 16.02% to 18.34%. PBIT margin of AMERICAS segment fell from 14.35% to 10.92%. PBIT margin of EUROPE segment rose from 5.64% to 8.13%. Overall PBIT margin rose from 11.71% to 12.06%.

Provision for interest fell 22.84% to Rs 42.9 crore. Loan funds declined from Rs 616.00 crore as of 31 March 2020 to Rs 584.40 crore as of 31 March 2021. Inventories rose to Rs 414.90 crore as of 31 March 2021 from Rs 369.20 crore as of 31 March 2020. Sundry debtors were higher at Rs 589.10 crore as of 31 March 2021 compared to Rs 490.30 crore as of 31 March 2020. Cash and bank balance declined from Rs 371.50 crore as of 31 March 2020 to Rs 241.40 crore as of 31 March 2021. Investments declined from Rs 16.00 crore as of 31 March 2020 to Rs 14.90 crore as of 31 March 2021.

Provision for depreciation rose 2.09% to Rs 234.6 crore. Fixed assets declined from Rs 1,384.90 crore as of 31 March 2020 to Rs 1,383.60 crore as of 31 March 2021. Intangible assets increased from Rs 14.20 crore to Rs 174.90 crore.

Profit before tax grew 21.97% to Rs 348.10 crore. Share of profit/loss was 50% lower at Rs -0.9 crore. Extraordinary items were decreased to Rs -16.10 crore. Provision for tax was expense of Rs 86.8 crore, compared to Rs 63.8 crore. Effective tax rate was 26.22% compared to 23.17%.

Minority interest increased 20.93% to Rs 5.20 crore. Net profit attributable to owners of the company increased 15.34% to Rs 239.10 crore.

Equity capital stood at Rs 63.10 crore as of 31 March 2021 to Rs 63.10 crore as of 31 March 2020. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 51.96% as of 31 March 2021 compared to 74.99% as of 31 March 2020 .

Cash flow from operating activities increased to Rs 522.40 crore for year ended March 2021 from Rs 471.10 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 176.00 crore, compared to Rs 124.30 crore during the year ended March 2020.

The scrip is currently trading at Rs 242

EPL : Consolidated Results
Particulars	2106 (03)	2006 (03)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	799.1	741.5	8	3,091.60	2,761.40	12
OPM (%)	18.1	19.8		19.77	20.2
OP	144.9	146.6	-1	611.1	557.5	10
Other Inc.	5.3	5.1	4	14.5	13.3	9
PBIDT	150.2	151.7	-1	625.6	570.8	10
Interest	8.9	16.2	-45	42.9	55.6	-23
PBDT	141.3	135.5	4	582.7	515.2	13
Depreciation	61.9	57.9	7	234.6	229.8	2
PBT	79.4	77.6	2	348.1	285.4	22
Share of Profit/(Loss) from Associates	-0.3	0	-	-0.9	-0.6	-50
PBT before EO	79.1	77.6	2	347.2	284.8	22
EO Income	0	-16.1	-	-16.1	-9.4	-71
PBT after EO	79.1	61.5	29	331.1	275.4	20
Taxation	21.0	18.4	19	89.50	75.40	36
PAT	58.1	43.1	32	241.6	200	15
PPA	-2.1	-2.5		-2.70	-11.60
PAT after PPA	60.2	45.6		244.3	211.6
Minority Interest (MI)	2.3	1.2	92	5.2	4.3	21
Net profit	57.9	44.4	30	239.1	207.3	15
EPS (Rs)*	#	#		7.9	6.4
Notes
* EPS is on current equity of Rs 63.11 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

EPL : Consolidated Segment Results
	% of (Total)	2106 (03)	2006 (03)	Var.(%)	% of (Total)	2103 (12)	2003 (12)	Var.(%)
Sales
AMESA	34	281.9	219.3	29	31	993.4	936.2	6
EAP	25	206	202	2	24	782	623	26
AMERICAS	20	163.9	150.7	9	20	652.1	618.8	5
EUROPE	21	178.4	197.7	-10	24	768.6	677.2	14
Total Reported Sales	100	830.2	769.7	8	100	3,196.10	2,855.20	12
Less: Inter segment revenues		31.4	28.5	10		105.7	94.6	12
Net Sales		798.8	741.2	8		3,090.40	2,760.60	12
PBIT
AMESA	36	31.1	16	94	28	108.3	107.6	1
EAP	39	34.5	43.8	-21	37	143.4	99.8	44
AMERICAS	14	11.9	15.4	-23	18	71.2	88.8	-20
EUROPE	11	9.9	17.9	-45	16	62.5	38.2	64
Total PBIT	100	87.4	93.1	-6	100	385.4	334.4	15
Less : Interest		8.9	16.2	-45		42.9	55.6	-23
Add: Other un-allcoable		0.6	-15.4	LP		-11.4	-3.4	235
PBT		79.1	61.5	29		331.1	275.4	20

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