Capitaline

Results 11-Aug-21

Analysis

Huhtamaki India

Higher raw material prices continues to impact

Huhtamaki India net sales rose 3% to Rs 662.64 crore in Q2CY21 compared to Q2CY20. The company operating margins decreased 710 bps to 3.4% leading to 66% decrease in operating profits to Rs 22.71 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 65.75% to 73.05%. Employee cost decreased from 11.84% to 9.66%. Other expenses rose from 11.98% to 13.99%. Profitability for the quarter was impacted by the unprecedented increase in raw material prices.

Other income increased 594% to Rs 2.5 crore compared to Rs 0.36 crore. Interest cost was Rs 6.29 crore compared to interest expense of Rs 7.07 crore. Depreciation decreased 5% to Rs 23.53 crore. PBT reported a loss of Rs 4.61 crore compared to profit of Rs 36.04 crore.

Tax provision reported a credit of Rs 1.11 crore compared to tax expense of Rs 9.32 crore. PAT reported a loss of Rs 3.5 crore compared to profit of Rs 26.72 crore.

Promoters’ stake was 67.73% as of 30 June 2021 compared to 66.94% as of 30 June 2020 .

Performance for half year ended June’21

For half ended June’20, net sales rose 6% to Rs 1294.98 crore. The company operating margins decreased 460 bps to 5%. As a result operating profits fell 45% to Rs 65.01 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 66.18% to 71.09%. Employee cost decreased from 11.31% to 10.04%. Other expenses rose from 13.23% to 14.10%.

Other income rose 52% to Rs 8.56 crore. Interest cost fell 11% to Rs 11.79 crore. Depreciation fell 6% to Rs 46.53 crore. PBT was down 75% to Rs 15.25 crore.

Tax provision decreased 23% to Rs 11.91 crore. PAT reported was down 93% to Rs 3.34 crore. Tax reversal for earlier period was Rs 9.33 crore compared to Rs 9.35 crore in the corresponding previous year period. Net profit fell 77% to Rs 12.67 crore.

Performance for year ended Dec’20

For year ended Dec’20, net sales fell 5% to Rs 2462.7 crore. The company operating margins decreased 180 bps to 9.5%. As a result operating profits fell 20% to Rs 233.62 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 66.48% to 65.62%. Employee cost increased from 9.69% to 11.16%. Other expenses rose from 12.55% to 13.77%

Other income fell 52% to Rs 8.02 crore. Interest cost fell 16% to Rs 26.12 crore. Loan funds rose to Rs 292.85 crore as of 31 December 2020 from Rs 268.84 crore as of 31 December 2019. Inventories rose to Rs 228.78 crore as of 31 December 2020 from Rs 181.86 crore as of 31 December 2019. Sundry debtors were lower at Rs 533.80 crore as of 31 December 2020 compared to Rs 618.47 crore as of 31 December 2019. Cash and bank balance rose to Rs 67.11 crore as of 31 December 2020 from Rs 44.61 crore as of 31 December 2019. Investments declined from Rs 60.81 crore as of 31 December 2019 to Rs 18.35 crore as of 31 December 2020.

Depreciation rose 13% to Rs 97.93 crore. Fixed assets increased to Rs 501.01 crore as of 31 December 2020 from Rs 422.13 crore as of 31 December 2019. Intangible assets increased from Rs 72.61 crore to Rs 76.14 crore.

PBT was down 39% to Rs 117.59 crore. The company had nil EO items during the quarter compared to EO income of Rs 10 crore in CY19 pertaining interest cost reversal towards written back income tax. PBT after EO fell 42% to Rs 117.59 crore.

Tax provision decreased 51% to Rs 30.95 crore. PAT reported was down 37% to Rs 86.64 crore. Tax reversal for earlier period was Rs 9.35 crore compared to Rs 31.99 crore in the corresponding previous year period. Net profit fell 44% to Rs 95.99 crore.

Equity capital stood at Rs 15.11 crore as of 30 June 2021 to Rs 15.11 crore as of 30 June 2020. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 66.94% as of 31 December 2020 ,compared to 66.94% as of 31 December 2019 .

Cash flow from operating activities decreased to Rs 169.34 crore for year ended December 2020 from Rs 284.52 crore for year ended December 2019. Cash flow used in acquiring fixed assets during the year ended December 2020 stood at Rs 48.86 crore, compared to Rs 67.57 crore during the year ended December 2019.

The scrip is currently trading at Rs 293

Huhtamaki India: Results
	2106 (03)	2006 (03)	Var.(%)	2106 (06)	2006 (06)	Var.(%)	2012 (12)	1912 (12)	Var.(%)
Total Operating Income	662.64	640.79	3	1294.98	1219.09	6	2462.70	2598.98	-5
OPM(%)	3.4%	10.5%		5.0%	9.6%		9.5%	11.3%
OP	22.71	67.49	-66	65.01	117.45	-45	233.62	292.90	-20
Other Income	2.50	0.36	594	8.56	5.64	52	8.02	16.74	-52
PBIDT	25.21	67.85	-63	73.57	123.09	-40	241.64	309.64	-22
Interest	6.29	7.07	-11	11.79	13.32	-11	26.12	31.13	-16
PBDT	18.92	60.78	-69	61.78	109.77	-44	215.52	278.51	-23
Depreciation	23.53	24.74	-5	46.53	49.55	-6	97.93	86.93	13
PBT Before EO	-4.61	36.04	PL	15.25	60.22	-75	117.59	191.58	-39
EO	0.00	0.00		0.00	0.00		0.00	-10.00
PBT after EO	-4.61	36.04	PL	15.25	60.22	-75	117.59	201.58	-42
Tax provision	-1.11	9.32	LP	11.91	15.54	-23	30.95	63.53	-51
PAT	-3.50	26.72	PL	3.34	44.68	-93	86.64	138.05	-37
PPA	0.00	0.00		-9.33	-9.35	0	-9.35	-31.99
PAT after PPA	-3.50	26.72	PL	12.67	54.03	-77	95.99	170.04	-44
EPS*	#	#		#	#		11.5	17.4
* Annualized On Current Equity Of Rs 15.11 Crore of face value of Rs 2 each
EO: Extraordinary Items, PL: Profit to Loss
EPS Is Calculated After Excluding EO And Relevant Tax
# EPS not annualised due to seasonality of business
Figures In Rs Crore
Source: Capitaline Database

Previous News

Huhtamaki India standalone net profit rises 77.42% in the June 2023 quarter
( Results - Announcements 18-Jul-23 07:35 )

Huhtamaki India reports standalone net loss of Rs 21.84 crore in the September 2021 quarter
( Results - Announcements 22-Oct-21 17:30 )

Huhtamaki India postpones board meeting
( Corporate News - 18-Feb-22 11:05 )

Huhtamaki India to announce Quarterly Result
( Corporate News - 23-Feb-22 10:28 )

Huhtamaki India AGM scheduled
( Corporate News - 20-Mar-23 10:11 )

Huhtamaki India to convene AGM
( Corporate News - 12-May-21 11:37 )

Huhtamaki India standalone net profit declines 92.55% in the December 2020 quarter
( Results - Announcements 25-Feb-21 08:21 )

Huhtamaki PPL
( Results - Analysis 18-Feb-20 15:57 )

Huhtamaki PPL intimates of its investment & modernisation plans
( Corporate News - 24-Oct-16 10:04 )

Huhtamaki PPL changes its name
( Corporate News - 12-Nov-20 15:08 )

Paper Products
( Analyst Meet / AGM - Press Meet 24-Jun-05 21:19 )