Capitaline

Results 19-Jul-21

Analysis

Plastiblends India

Margin decline led by volatility in raw material prices

Plastiblends India standalone net sales increased 48.54% in Q1FY22 compared to Q1FY21 to Rs 153.25 crore. Operating profit margin has slumped from 12.62% to 8.33%, leading to 2% decline in operating profit to Rs12.76 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 63.31% to 72.97%. Employee cost decreased from 7.79% to 5.58%. Other expenses fell from 15.53% to 12.66%. Other income rose 136% to Rs 1.77 crore. Provision for interest fell 15.70% to Rs 1.02 crore. Provision for depreciation rose 6.94% to Rs4.16 crore. Profit before tax grew 7.84%to Rs 9.35 crore. Provision for tax was expense of Rs 2.6 crore, compared to Rs 2.44 crore. Effective tax rate was 27.81% compared to28.14%. Profit after tax increased 8.35% to Rs 6.75 crore.

The polymer and other raw material prices experienced huge volatility which the company strategically decided to partially absorb such price. Ocean freight cost increased substantially. Further there were shortages in containers and availability of container was major issue. Due to lockdown/covid impact/change in policy the eligible export incentive to be received from DGFT by way of advance license/MEIS incentive was reduced by Rs 1 crore in Q1.

Commenting on the performance, Shri S. N. Kabra, Chairman & Managing Director said, The sale for the first quarter was 149% of the the previous first quarter sales. Due to several external factors as mentioned above margin has some aberration in the current quarter but overall we are confident of sustaining our margins this fiscal and grow it consistently.

The "Make in India/Atmanirmbhar Bharat" initiative supported by "Production linked incentive" will help several sectors to grow substantially to whom we are serving. We are confident about our growth trajectory in time to come as we have several products in pipeline, eyeing newer geographies/new customer ssupported by consistent strong financial ratios.

Full year results analysis

Net sales of Plastiblends India has declined 4.71% to Rs 577.33 crore. Operating profit margin has jumped from 11.13% to 11.88%, leading to 1.68% rise in operating profit to Rs 68.58crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 70.80% to 68.37%. Purchase of finished goods cost fell from0.07% to 0.01%. Employee cost increased from 5.00% to 5.51%. Other expenses rose from 13.15% to14.05%.

Other income up 33.97% toRs 3.51 crore. Provision for interest up104.05% to Rs 3.02 crore. Loan funds declined from Rs 40.36 crore as of 31 March 2020 to Rs 31.91 crore as of 31March 2021. Inventories rose to Rs123.98 crore as of 31 March 2021 from Rs 98.59 crore as of 31 March 2020. Sundry debtors were lower at Rs 95.38 crore as of 31 March 2021 compared to Rs 101.12 crore as of 31 March 2020. Cash and bank balance rose to Rs 2.90 crore as of 31 March 2021 from Rs 1.23 crore as of 31 March 2020. Investments rose to Rs 21.96 crore as of 31March 2021 from Rs 3.90 crore as of 31 March 2020 .

Provision for depreciation down 6.92% to Rs 15.87 crore. Fixedassets increased to Rs 188.21 crore as of 31 March 2021 from Rs 182.74 crore as of 31 March 2020. Intangible assets increased from Rs 0.13 crore to Rs 0.16 crore.

Profit before tax grew3.22% to Rs 53.20 crore. Provision for tax was expense of Rs 15.85 crore, compared to Rs 14.36 crore. Effective tax rate was 29.79% compared to27.86%. Profit after tax rose 0.46% to Rs 37.35 crore.

Promoters' stake was 63.98%as of 31 March 2021 compared to 63.65% as of 31 March 2020 .

Cash flow from operating activities decreased to Rs 48.14 crore for year ended March 2021 from Rs 74.39crore for year ended March 2020. Cashflow used in acquiring fixed assets during the year ended March 2021 stood at Rs 21.01 crore, compared to Rs 20.66 crore during the year ended March2020.

The scrip is currently trading around Rs 272 on the BSE

Plastiblends India : Standalone Results
	Quarter ended			Year ended
Particulars	202106	202006	Var.(%)	202103	202003	Var.(%)
Net Sales	153.25	103.17	49	577.33	605.87	-5
OPM (%)	8.3	12.6		11.9	11.1
OP	12.76	13.02	-2	68.58	67.45	2
Other Inc.	1.77	0.75	136	3.51	2.62	34
PBIDT	14.53	13.77	6	72.09	70.07	3
Interest	1.02	1.21	-16	3.02	1.48	104
PBDT	13.51	12.56	8	69.07	68.59	1
Depreciation	4.16	3.89	7	15.87	17.05	-7
PBT	9.35	8.67	8	53.2	51.54	3
Taxation	2.6	2.44	7	15.85	14.36	10
PAT	6.75	6.23	8	37.35	37.18	0
EPS (Rs)*	#	#		14.37	14.31
Notes
* EPS is on current equity of Rs 12.99 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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