EPL conducted conference call on 26 July 2022 to discuss the financial results and performance of the company for the quarter ended June'22. Mr. Anand Kripalu – MD & CEO, Mr. M.R. Ramasamy – COO and Mr. Amit Jain – CFO long with other senior management of the company addressed the call

Highlights of the Concall

• The inflationary environment persisted through the first quarter of FY'23. Polymer costs continue to rise. Energy continued to inflate particularly in Europe and minimum wage increased in the western world driven by general installation. All these added to the increase in costs. However, the major hit came from EAP, where business was severely impacted due to the lockdown as a result of COVID in China. Consequently, revenue for EAP declined by 6.4%.

• Overall revenue increased by 4.1% in Q1FY23. Excluding EAP, revenue growth was 11.4%, broad-based across all other regions. AMESA grew by 13.4%. Americas grew by 20.4% and Europe grew by 10.5%. In the quarter, non-Oral Care grew faster at 11.7%, while Oral Care grew by only 3.2%, predominantly affected by EAP.

• EBITDA margin during the quarter was 15.1% compared to last quarter's 15.4%. In addition to continuing raw material inflation, freight cost, absenteeism due to Covid and energy cost in western geographies. If not for the COVID impact in E&P, EBITDA margin would have been sequentially higher.

• Raw Material prices and other input costs remained high in Q1FY23, but RM prices started to temper towards end of quarter. The company expects to see some positive impact of this in Q3FY23. Polymer prices were higher in Q1FY23 than both last year and preceding quarter.

• Net debt reduced by Rs 45.9 crore sequentially

• Brazil project continues to make good progress and a new entity is incorporated. The company has finalized the location of factory, which is close to one of its key customers. The first commercial delivery is expected by the end of FY '23.

• Q1FY23 was strong in terms of Platina and the plan to more than double volumes in FY '23 is tracking well.

• EPL is now in the top 5% of plastic product companies rated by EcoVadis.

• The company expects short term challenges in EAP to continue through Q2FY23, albeit with lower intensive

• The company expect net zero emissions by 2050 and 30% reduction in emissions by 2030

• The company expect effective tax rate of 27-28% in FY23