Standalone Performance

Performance for the quarter ended June 2013

The net sales increased by 7% to Rs 419.16 crore. The quarter was tough quarter where the company has to face pricing pressure and lower demands for several of its products.

Performance of plastics business grew by 12% to Rs 369.72 crore The lifestyle furniture, furnishings and accessories business (@ home retail business) de- grew by 2% to Rs 41.7 crore. Others business (mattress business) also de-grew by 49% to Rs 9.56 crore.

The net sales from Nilkamal Bito Storage Systems (Indo-German JV) declined 16% to Rs 17.92 crore while Cambro Nilkama (Indo-US JV) increased by 52% to Rs 4.83 crore. The company's subsidiary Nilkamal Eswaran Plastic at Sri-Lanka had sales of Rs 7.86 crore while Nilkamal Cartes and Bins FZE at UAE had sales of Rs 8.19 crore for the quarter.

OPM declined by 91 bps to 6.9% due to rise in raw material cost by 560 bps to 42.7% and other expenditure by 20 bps to 21.9% of adjusted net sales. As a result, the operating profit de-grew by 5% to Rs 28.72 crore.

Other income decreased by 28% to Rs 0.89 crore. The interest cost decreased by 25% to Rs 7.99 crore while depreciation increased by 21% to Rs 14.05 crore. The PBT was down by 17% to Rs 7.58 crore.

Tax outgo was down by 28% to Rs 2.11 crore. The effective tax rate was down from 31.9% to 27.8%. The net profit has decreased by 12% to Rs 5.47 crore due to fall in margin and rise in depreciation.

The PBIT margin of plastics business segment was down by 180 bps to 6.29%. As a result, the plastics business had a PBIT of Rs 23.26 crore, down 13%. The loss at PBIT level in lifestyle furniture, furnishings and accessories business inclined by 102% to Rs 5.43 crore. The loss at PBIT level in others declined by 60% to Rs 0.42 crore.

Performance for the year ended March 2014

The net sales increased by 3% to Rs 1654.77 crore. Performance of plastics business was flat at Rs 1379.08 crore while lifestyle furniture, furnishings and accessories business grew by 14% to Rs 218.81 crore. Other business grew by 24% to Rs 67.25 crore.

OPM inclined by 89 bps to 8.8% due to decline in raw material cost by 220 bps to 36.5% of adjusted net sales. As a result, the operating profit grew by 14% to Rs 144.95 crore.

Other income decreased by 16% to Rs 3.53 crore. The interest cost decreased by 4% to Rs 41.42 crore while depreciation increased by 10% to Rs 48.93 crore. The PBT has increased by 33% to Rs 58.12 crore.

Tax outgo has increased by 45% to Rs 18.1 crore. The effective tax rate was up from 12.5% to 18.1%. As a result, the net profit has increased by 28% to Rs 40.02 crore due to rise in margin and fall in interest cost.

The PBIT margin of plastics business segment was up by 30 bps to 8.25%. As a result, the plastics business had a PBIT of Rs 113.84 crore, up by 4%. PBIT level in lifestyle furniture, furnishings and accessories business stood at Rs 1.92 crore against loss of Rs 7.49 crore in the corresponding period of last year. The loss at PBIT level in others declined by 19% to Rs 2.61 crore.

Valuation

The Promoters stake stood at 63.25% for June 2014.

The scrip is currently trading at Rs 311.45 on the BSE.