Capitaline

Results 07-Aug-21

Analysis

Ganesha Ecosphere

EO expense impacted profits

Ganesha Ecosphere consolidated net sales increased 186.10% to Rs 198.38 crore in Q1FY22 compared to Q1FY21. Operating profit margin of the company was 11.5% compared to negative of 4.9%. Raw material cost as a % of total sales (net of stock adjustments) decreased from 68.04% to 63.07%. Purchase of finished goods cost rose from 1.91% to 3.49%. Employee cost decreased from 9.22% to 5.55%. Other expenses fell from 25.00% to 17.95%. Power and Oil fuel cost fell from 11.71% to 8.19%.

Other income fell 49.47% to Rs 1.92 crore. Provision for interest rose 47.09% to Rs 3.03 crore. Provision for depreciation rose 7.76% to Rs 7.08 crore. PBT before EO was Rs 14.58 crore compared to loss of Rs 8.22 crore. The company reported EO expense of Rs 25.13 crore compared to nil in the corresponding previus year period. PBT after EO was loss of Rs 10.55 crore compared to loss of Rs 8.22 crore.

There was a fire incident in holding company`s Polyester Staple Fibre manufacturing unit situated at Raipur (Rania), District Kanpur Dehat on June 04, 2021. The fire resulted into major damages to the building, plant & machinery as well as inventories. The Group, based on internal evaluation, has recognized a loss of Rs. 3,3.58 crore and also recognized deferred tax asset of Rs 8.45 crore in respect of this loss. The net impact of Rs. 2,5.13 crore has been disclosed as `Exceptional Item` in this consolidated financial results. The assets, damaged by fire, are fully insured and insurance company is in the process of estimating and finalizing the claim amount. Management is quite confident of recovering the amount of loss from the insurance company, however, pending the determination of insurance claim amount, the Group has not recognized the same as income in the books of accounts. The same will be recognized as income in the period in which the insurance claim amount is reasonably ascertained.

Provision for tax was debit of Rs 2.29 crore, compared to credit of Rs 1.96 crore. Effective tax rate was negative 21.71% compared to 23.84%.

Net profit attributable to owners of the company decreased 105.11% to Rs -12.84 crore.

Promoters’ stake was 42.14% as of 30 June 2021 compared to 40.37% as of 30 June 2020 .

Full year results analysis

Net sales of Ganesha Ecosphere has declined 15.49% to Rs 751.14 crore. Operating profit margin has slumped from 12.57% to 11.25%, leading to 24.35% decline in operating profit to Rs 84.49 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 60.90% to 61.00%. Purchase of finished goods cost rose from 1.56% to 2.49%. Employee cost decreased from 6.56% to 6.36%. Other expenses rose from 18.76% to 18.96%. Power and Oil fuel cost fell from 9.18% to 9.09%.

Other income rose 27.43% to Rs 9.43 crore. Provision for interest rose 13.38% to Rs 8.81 crore. Loan funds rose to Rs 120.21 crore as of 31 March 2021 from Rs 83.51 crore as of 31 March 2020. Inventories rose to Rs 172.52 crore as of 31 March 2021 from Rs 144.81 crore as of 31 March 2020. Sundry debtors were higher at Rs 105.55 crore as of 31 March 2021 compared to Rs 97.37 crore as of 31 March 2020. Cash and bank balance rose to Rs 15.16 crore as of 31 March 2021 from Rs 4.87 crore as of 31 March 2020. Investments declined from Rs 83.22 crore as of 31 March 2020 to Rs 72.13 crore as of 31 March 2021.

Provision for depreciation fell 3.17% to Rs 27.16 crore. Fixed assets increased to Rs 327.50 crore as of 31 March 2021 from Rs 303.71 crore as of 31 March 2020. Intangible assets declined from Rs 1.86 crore to Rs 1.40 crore.

Profit before tax shrink 30.41% to Rs 57.95 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 14.43 crore, compared to Rs 19.59 crore. Effective tax rate was 24.90% compared to 23.53%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 31.66% to Rs 43.52 crore.

Equity capital stood at Rs 21.83 crore as of 31 March 2021 to Rs 21.83 crore as of 31 March 2020. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 42.14% as of 31 March 2021 compared to 40.36% as of 31 March 2020 .

Cash flow from operating activities decreased to Rs 27.40 crore for year ended March 2021 from Rs 79.99 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 59.28 crore, compared to Rs 31.69 crore during the year ended March 2020.

The scrip trades at Rs 532.

Ganesha Ecosphere : Consolidated Results
Particulars	2106 (03)	2006 (03)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	198.38	69.34	186	751.14	888.83	-15
OPM (%)	11.5	-4.9		11.3	12.6
OP	22.77	-3.39	LP	84.49	111.69	-24
Other Inc.	1.92	3.8	-49	9.43	7.4	27
PBIDT	24.69	0.41	999	93.92	119.09	-21
Interest	3.03	2.06	47	8.81	7.77	13
PBDT	21.66	-1.65	LP	85.11	111.32	-24
Depreciation	7.08	6.57	8	27.16	28.05	-3
PBT before EO	14.58	-8.22	LP	57.95	83.27	-30
EO Income	-25.13	0	-	0	0	-
PBT after EO	-10.55	-8.22	-28	57.95	83.27	-30
Taxation	2.29	-1.96	PL	14.43	19.59	-26
PAT	-12.84	-6.26	-105	43.52	63.68	-32
EPS (Rs)*	#	#		19.9	29.2
Notes
* EPS is on current equity of Rs 21.83 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

Previous News

Ganesha Ecosphere consolidated net profit declines 39.70% in the December 2023 quarter
( Results - Announcements 14-Feb-24 14:06 )

Ganesha Ecosphere reports consolidated net profit of Rs 13.27 crore in the June 2022 quarter
( Results - Announcements 04-Aug-22 14:29 )

Ganesha Ecosphere standalone net profit rises 11.38% in the September 2022 quarter
( Results - Announcements 15-Nov-22 08:24 )

Ganesha Ecosphere and Nasdaq Co. Applied DNA Sciences enter into collaboration agreement
( Corporate News - 20-Oct-21 09:42 )

Ganesha Ecosphere jumps as SBI equity fund purchases bulk shares
( Hot Pursuit - 24-Nov-15 10:33 )

Ganesha Ecosphere consolidated net profit declines 85.79% in the September 2023 quarter
( Results - Announcements 04-Nov-23 17:08 )

Ganesha Ecosphere consolidated net profit rises 38.15% in the September 2022 quarter
( Results - Announcements 15-Nov-22 08:28 )

Ganesha Ecosphere announces demise of director
( Corporate News - 02-Jun-23 14:43 )

Ganesha Ecosphere
( Results - Analysis 28-Oct-21 21:01 )

Ganesha Ecosphere to declare Quarterly Result
( Corporate News - 04-Nov-17 10:52 )

Ganesha Ecosphere standalone net profit declines 23.24% in the September 2020 quarter
( Results - Announcements 29-Oct-20 14:37 )