Capitaline

Results 11-Feb-23

Analysis

Balmer Lawrie & Company

Improved operating performance

Balmer Lawrie & Company consolidated net sales increased 1.77% to Rs 514.01 crore in Q3FY23 compared to Q3FY22. Sales of Industrial Packaging segment has gone down 22.54% to Rs 148.43 crore (accounting for 26.70% of total sales). Sales of Logistics Services segment has gone up 3.06% to Rs 122.06 crore (accounting for 21.96% of total sales). Sales of Travel & Vacations segment rose 59.61% to Rs 39.34 crore (accounting for 7.08% of total sales). Sales of Greases & Lubricants segment has gone up 20.49% to Rs 159.11 crore (accounting for 28.62% of total sales). Sales of Others segment has gone down 7.31% to Rs 27.48 crore (accounting for 4.94% of total sales). Sales of Logistics Infrastructure segment has gone up 24.98% to Rs 59.54 crore (accounting for 10.71% of total sales). Inter-segment sales rose Rs 38.96 crore to Rs 41.95 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 45.83% to Rs 39.05 crore. PBIT of Industrial Packaging segment fell 60.63% to Rs 4.20 crore (accounting for 10.76% of total PBIT). PBIT of Logistics Services segment rose 11.07% to Rs 16.65 crore (accounting for 42.64% of total PBIT). PBIT of Travel & Vacations segment rose 750.86% to Rs 16.11 crore (accounting for 41.27% of total PBIT). PBIT of Greases & Lubricants segment rose 47.09% to Rs 14.72 crore (accounting for 37.69% of total PBIT). PBIT of Others segment fell 8.18% to Rs -22.17 crore (accounting for -56.77% of total PBIT). PBIT of Logistics Infrastructure segment fell 1.81% to Rs 9.54 crore (accounting for 24.42% of total PBIT).

PBIT margin of Industrial Packaging segment fell from 5.57% to 2.83%. PBIT margin of Logistics Services segment rose from 12.66% to 13.64%. PBIT margin of Travel & Vacations segment rose from 7.68% to 40.96%. PBIT margin of Greases & Lubricants segment rose from 7.58% to 9.25%. PBIT margin of Others segment fell from negative 69.12% to negative 80.67%. PBIT margin of Logistics Infrastructure segment fell from 20.38% to 16.01%. Overall PBIT margin rose from 4.92% to 7.02%.

Operating profit margin has jumped from 7.14% to 9.73%, leading to 38.71% rise in operating profit to Rs 50.02 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 69.28% to 68.19%. Employee cost decreased from 11.83% to 10.51%. Other expenses rose from 10.84% to 11.65%.

Other income fell 28.98% to Rs 3.48 crore. PBIDT rose 30.62% to Rs 53.5 crore. Provision for interest rose 32.12% to Rs 5.1 crore.

PBDT rose 30.46% to Rs 48.4 crore. Provision for depreciation rose 1.90% to Rs 14.45 crore.

Profit before tax grew 48.12% to Rs 33.95 crore. Share of profit/loss was 20.59% higher at Rs 10.54 crore. Provision for tax was expense of Rs 9.76 crore, compared to Rs 5.34 crore. Effective tax rate was 21.94% compared to 16.87%.

Minority interest decreased 49.41% to Rs -1.27 crore. Net profit attributable to owners of the company increased 32.50% to Rs 36.00 crore.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Balmer Lawrie & Company has increased 15.77% to Rs 1713.44 crore. Sales of Industrial Packaging segment has gone down 10.96% to Rs 575.51 crore (accounting for 31.22% of total sales). Sales of Logistics Services segment has gone up 34.13% to Rs 416.75 crore (accounting for 22.61% of total sales). Sales of Travel & Vacations segment rose 153.91% to Rs 121.17 crore (accounting for 6.57% of total sales). Sales of Greases & Lubricants segment has gone up 29.39% to Rs 485.76 crore (accounting for 26.35% of total sales). Sales of Others segment has gone up 4.27% to Rs 80.76 crore (accounting for 4.38% of total sales). Sales of Logistics Infrastructure segment has gone up 22.90% to Rs 163.34 crore (accounting for 8.86% of total sales). Inter-segment sales rose Rs 110.57 crore to Rs 129.85 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 49.98% to Rs 127.02 crore. PBIT of Industrial Packaging segment fell 50.18% to Rs 30.31 crore (accounting for 23.87% of total PBIT). PBIT of Logistics Services segment rose 47.21% to Rs 51.61 crore (accounting for 40.63% of total PBIT). PBIT of Travel & Vacations reported profit of Rs 47.09 crore compared to loss of Rs 8.50 crore. PBIT of Greases & Lubricants segment rose 38.59% to Rs 38.83 crore (accounting for 30.57% of total PBIT). PBIT of Others segment fell 11.78% to Rs -66.25 crore (accounting for -52.15% of total PBIT). PBIT of Logistics Infrastructure segment fell 10.89% to Rs 25.42 crore (accounting for 20.01% of total PBIT).

PBIT margin of Industrial Packaging segment fell from 9.41% to 5.27%. PBIT margin of Logistics Services segment rose from 11.28% to 12.38%. PBIT margin of Travel & Vacations segment rose from negative 17.80% to 38.86%. PBIT margin of Greases & Lubricants segment rose from 7.46% to 7.99%. PBIT margin of Others segment fell from negative 76.52% to negative 82.03%. PBIT margin of Logistics Infrastructure segment fell from 21.47% to 15.56%. Overall PBIT margin rose from 5.32% to 6.89%.

Operating profit margin has jumped from 7.08% to 8.75%, leading to 43.10% rise in operating profit to Rs 149.95 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 69.68% to 70.25%. Purchase of finished goods cost fell from 0.42% to 0.27%. Employee cost decreased from 11.57% to 9.93%. Other expenses fell from 11.27% to 10.90%.

Other income fell 9.99% to Rs 19.47 crore. PBIDT rose 34.01% to Rs 169.42 crore. Provision for interest rose 29.13% to Rs 13.43 crore.

PBDT rose 34.45% to Rs 155.99 crore. Provision for depreciation rose 1.63% to Rs 42.41 crore.

Profit before tax grew 52.89% to Rs 113.58 crore. Share of profit/loss was 21.78% higher at Rs 42.39 crore. Provision for tax was expense of Rs 31.63 crore, compared to Rs 20.71 crore. Effective tax rate was 20.28% compared to 18.98%.

Minority interest decreased 17.81% to Rs -2.91 crore. Net profit attributable to owners of the company increased 40.05% to Rs 127.25 crore.

The scrip trades at Rs 118

Balmer Lawrie & Company : Consolidated Results
Particulars	2212 (03)	2112 (03)	Var.(%)	2212 (09)	2112 (09)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	514.01	505.08	2	1713.44	1479.99	16	2,055.35	1,528.98	34
OPM (%)	9.7	7.1		8.8	7.1		8.2	9.2
OP	50.02	36.06	39	149.95	104.79	43	169.06	140.46	20
Other Inc.	3.48	4.9	-29	19.47	21.63	-10	37.12	49.26	-25
PBIDT	53.5	40.96	31	169.42	126.42	34	206.18	189.72	9
Interest	5.1	3.86	32	13.43	10.4	29	13.59	11.92	14
PBDT	48.4	37.1	30	155.99	116.02	34	192.59	177.8	8
Depreciation	14.45	14.18	2	42.41	41.73	2	55.79	55.02	1
PBT	33.95	22.92	48	113.58	74.29	53	136.8	122.78	11
Share of Profit/(Loss) from Associates	10.54	8.74	21	42.39	34.81	22	45.3	32.7	39
PBT before EO	44.49	31.66	41	155.97	109.1	43	182.1	155.48	17
EO Income	0	0		0	0		0	0	-
PBT after EO	44.49	31.66	41	155.97	109.1	43	182.1	155.48	17
Taxation	9.76	5.34	83	31.63	20.71	53	47.34	40.19	18
PAT	34.73	26.32	32	124.34	88.39	41	134.76	115.29	17
Minority Interest (MI)	-1.27	-0.85	49	-2.91	-2.47	18	-3.28	-5.04	35
Net profit	36	27.17	32	127.25	90.86	40	138.04	120.33	15
EPS (Rs)*	#	#		#	#		8.1	7.0
Notes
* EPS is on current equity of Rs 171.00 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

Balmer Lawrie & Company : Consolidated Segment Results
	% of (Total)	2212 (03)	2112 (03)	Var.(%)	% of (Total)	2212 (09)	2112 (09)	Var.(%)	% of (Total)	2203 (12)	2103 (12)	Var.(%)
Sales
Industrial Packaging	27	148.43	191.61	-23	31	575.51	646.36	-11	39	849.19	555.02	53
Logistics Services	22	122.06	118.44	3	23	416.75	310.7	34	21	467.99	379.12	23
Travel & Vacations	7	39.34	24.65	60	7	121.17	47.72	154	4	80.05	45.59	76
Greases & Lubricants	29	159.11	132.06	20	26	485.76	375.43	29	23	510.68	365.5	40
Others	5	27.48	29.64	-7	4	80.76	77.45	4	5	114.61	101.65	13
Logistics Infrastructure	11	59.54	47.64	25	9	163.34	132.9	23	8	182.84	207.17	-12
Total Reported Sales	100	555.95	544.04	2	100	1,843.29	1,590.56	16	100	2,205.35	1,654.05	33
Less: Inter segment revenues		41.95	38.96	8		129.85	110.57	17		150.01	125.06	20
Net Sales		514.01	505.08	2		1,713.44	1,479.99	16		2,055.35	1,528.98	34
PBIT
Industrial Packaging	11	4.2	10.67	-61	24	30.31	60.85	-50	50	75.24	46.3	63
Logistics Services	43	16.65	14.99	11	41	51.61	35.06	47	39	58.64	53.32	10
Travel & Vacations	41	16.11	1.89	751	37	47.09	-8.5	LP	0	-0.42	-15.2	97
Greases & Lubricants	38	14.72	10.01	47	31	38.83	28.02	39	28	42.41	31.45	35
Others	-57	-22.17	-20.49	-8	-52	-66.25	-59.26	-12	-43	-64.27	-23.52	-173
Logistics Infrastructure	24	9.54	9.71	-2	20	25.42	28.53	-11	26	38.79	42.36	-8
Total PBIT	100	39.05	26.78	46	100	127.02	84.69	50	100	150.38	134.7	12
Less : Interest		5.1	3.86	32		13.43	10.4	29		13.59	11.92	14
Add: Other un-allcoable		0	0	-		0	0	-		0	0	-
PBT		33.95	22.92	48		113.59	74.29	53		136.79	122.78	11

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