Capitaline

Results 08-Aug-23

Analysis

EPL

Strong operating performance

EPL consolidated net sales increased 9.43% to Rs 910.2 crore in Q1FY24 compared to Q1FY23. Sales of AMESA segment has gone up 5.04% to Rs 335.80 crore (accounting for 34.23% of total sales). Sales of EAP segment has gone up 11.46% to Rs 214.90 crore (accounting for 21.91% of total sales). Sales of AMERICAS segment rose 10.39% to Rs 217.80 crore (accounting for 22.20% of total sales). Sales of EUROPE segment has gone up 7.76% to Rs 212.50 crore (accounting for 21.66% of total sales). Inter-segment sales came down from Rs 75.50 crore to Rs 71.20 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 17.84% to Rs 81.90 crore. PBIT of AMESA segment rose 18.12% to Rs 36.50 crore (accounting for 44.57% of total PBIT). PBIT of EAP segment rose 42.11% to Rs 35.10 crore (accounting for 42.86% of total PBIT). PBIT of AMERICAS segment fell 77.14% to Rs 2.40 crore (accounting for 2.93% of total PBIT). PBIT of EUROPE segment rose 132.35% to Rs 7.90 crore (accounting for 9.65% of total PBIT).

PBIT margin of AMESA segment rose from 9.67% to 10.87%. PBIT margin of EAP segment rose from 12.81% to 16.33%. PBIT margin of AMERICAS segment fell from 5.32% to 1.10%. PBIT margin of EUROPE segment rose from 1.72% to 3.72%. Overall PBIT margin rose from 7.66% to 8.35%.

Operating profit margin has jumped from 15.10% to 17.47%, leading to 26.59% rise in operating profit to Rs 159.00 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.47% to 44.25%. Employee cost increased from 19.34% to 19.73%. Other expenses fell from 20.50% to 19.15%.

Other income rose 138.10% to Rs 10 crore. PBIDT rose 30.20% to Rs 169 crore. Provision for interest rose 92.62% to Rs 23.5 crore.

PBDT rose 23.72% to Rs 145.5 crore. Provision for depreciation rose 22.70% to Rs 80 crore.

Profit before tax grew 25% to Rs 65.50 crore. Provision for tax was expense of Rs 10.6 crore, compared to Rs 14.1 crore. Effective tax rate was 16.01% compared to 28.72%.

Minority interest decreased 18.75% to Rs 1.30 crore. Net profit attributable to owners of the company increased 62.57% to Rs 54.30 crore.

Promoters’ stake was 51.53% as of 30 June 2023 ,compared to 51.91% as of 30 June 2022 .

Full year results analysis

Net sales (including other operating income) of EPL has increased 7.61% to Rs 3694.1 crore. Sales of AMESA segment has gone up 11.69% to Rs 1,369.20 crore (accounting for 34.77% of total sales). Sales of EAP segment has gone down 1.48% to Rs 849.80 crore (accounting for 21.58% of total sales). Sales of AMERICAS segment rose 18.96% to Rs 875.80 crore (accounting for 22.24% of total sales). Sales of EUROPE segment has gone up 12.71% to Rs 843.50 crore (accounting for 21.42% of total sales). Inter-segment sales rose Rs 141.40 crore to Rs 245.60 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 2.03% to Rs 328.70 crore. PBIT of AMESA segment rose 13.61% to Rs 146.90 crore (accounting for 44.69% of total PBIT). PBIT of EAP segment fell 3.13% to Rs 123.70 crore (accounting for 37.63% of total PBIT). PBIT of AMERICAS segment fell 28.36% to Rs 37.90 crore (accounting for 11.53% of total PBIT). PBIT of EUROPE segment fell 21.09% to Rs 20.20 crore (accounting for 6.15% of total PBIT).

PBIT margin of AMESA segment rose from 10.55% to 10.73%. PBIT margin of EAP segment fell from 14.80% to 14.56%. PBIT margin of AMERICAS segment fell from 7.19% to 4.33%. PBIT margin of EUROPE segment fell from 3.42% to 2.39%. Overall PBIT margin fell from 9.39% to 8.35%.

Operating profit margin has declined from 16.78% to 15.64%, leading to 0.30% rise in operating profit to Rs 577.80 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 45.12% to 45.77%. Employee cost decreased from 18.63% to 18.51%. Other expenses rose from 19.75% to 20.21%.

Other income rose 250.83% to Rs 42.1 crore. PBIDT rose 5.41% to Rs 619.9 crore. Provision for interest rose 67.25% to Rs 67.4 crore. Loan funds rose to Rs 889.50 crore as of 31 March 2023 from Rs 767.10 crore as of 31 March 2022. Inventories rose to Rs 607.90 crore as of 31 March 2023 from Rs 594.10 crore as of 31 March 2022. Sundry debtors were higher at Rs 643.00 crore as of 31 March 2023 compared to Rs 636.70 crore as of 31 March 2022. Cash and bank balance rose to Rs 244.40 crore as of 31 March 2023 from Rs 192.70 crore as of 31 March 2022. Investments rose to Rs 19.30 crore as of 31 March 2023 from Rs 7.20 crore as of 31 March 2022 .

PBDT rose 0.86% to Rs 552.5 crore. Provision for depreciation rose 11.58% to Rs 280.5 crore. Fixed assets increased to Rs 1,755.60 crore as of 31 March 2023 from Rs 1,504.10 crore as of 31 March 2022. Intangible assets stood at Rs 115.90 crore.

Profit before tax down 8.23% to Rs 272.00 crore. Share of profit/loss was 61.84% higher at Rs -2.9 crore. Provision for tax was expense of Rs 37.3 crore, compared to Rs 67.5 crore. Effective tax rate was 13.92% compared to 23.37%.

Minority interest decreased 42.03% to Rs 4.00 crore. Net profit attributable to owners of the company increased 5.74% to Rs 226.70 crore.

Equity capital increased from Rs 63.20 crore as of 31 March 2022 to Rs 63.60 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 51.53% as of 31 March 2023 ,compared to 51.91% as of 31 March 2022 .

The scrip is currently trading at Rs 219

EPL : Consolidated Results
Particulars	2306 (03)	2206 (03)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	910.20	831.80	9	3,694.10	3,432.80	8
OPM (%)	17.5	15.1		15.6	16.8
OP	159.00	125.60	27	577.8	576.1	0
Other Inc.	10.00	4.20	138	42.1	12	251
PBIDT	169.00	129.80	30	619.9	588.1	5
Interest	23.50	12.20	93	67.4	40.3	67
PBDT	145.50	117.60	24	552.5	547.8	1
Depreciation	80.00	65.20	23	280.5	251.4	12
PBT	65.50	52.40	25	272	296.4	-8
Share of Profit/(Loss) from Associates	0.70	-2.20	LP	-2.9	-7.6	-62
PBT before EO	66.20	50.20	32	269.1	288.8	-7
EO Income	0.00	-1.10		-1.1	0
PBT after EO	66.20	49.10	35	268	288.8	-7
Taxation	17.40	15.37	13	69.40	70.30	-1
PAT	48.80	33.73	45	198.6	218.5	-9
PPA	-6.80	-1.30		-32.10	-2.80
PAT after PPA	55.60	35.03	59	230.7	221.3	4
Minority Interest (MI)	1.30	1.60	-19	4	6.9	-42
Net profit	54.30	33.43	62	226.7	214.4	6
EPS (Rs)*	#	#		7.2	6.7
Notes
* EPS is on current equity of Rs 63.64 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)	2306 (03)	2206 (03)	Var.(%)	% of (Total)	2303 (12)	2203 (12)	Var.(%)
Sales
AMESA	34	335.8	319.7	5	35	1,369.20	1,225.90	12
EAP	22	214.9	192.8	11	22	849.8	862.6	-1
AMERICAS	22	217.8	197.3	10	22	875.8	736.2	19
EUROPE	22	212.5	197.2	8	21	843.5	748.4	13
Total Reported Sales	100	981.00	907.00	8	100	3,938.30	3,573.10	10
Less: Inter segment revenues		71.2	75.5	-6		245.6	141.4	74
Net Sales		909.80	831.50	9		3,692.70	3,431.70	8
PBIT
AMESA	45	36.5	30.9	18	45	146.9	129.3	14
EAP	43	35.1	24.7	42	38	123.7	127.7	-3
AMERICAS	3	2.4	10.5	-77	12	37.9	52.9	-28
EUROPE	10	7.9	3.4	132	6	20.2	25.6	-21
Total PBIT	100	81.9	69.5	18	100	328.7	335.5	-2
Less : Interest		23.5	12.2	93		67.4	40.3	67
Add: Other un-allcoable		7.8	-8.2	LP		6.7	-6.4	LP
PBT		66.2	49.1	35		268	288.8	-7

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