Capitaline

Results 28-Oct-21

Analysis

Ganesha Ecosphere

Capacity utilisation was 104% in Q2FY22

Ganesha Ecosphere consolidated net sales increased 25.18% to Rs 247.89 crore in Q2FY22 compared to Q2FY21.Operating profit margin has declined from 11.53% to 10.87%, leading to 17.95% rise in operating profit to Rs 26.94 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 59.34% to 63.13%. Purchase of finished goods cost fell from 2.10% to 0.84%. Employee cost decreased from 6.39% to 5.74%. Other expenses fell from 20.06% to 19.27%. Power and Oil fuel cost fell from 9.46% to 8.75%.

Other income rose 61.33% to Rs 2.42 crore. PBIDT rose 20.62% to Rs 29.36 crore. Provision for interest fell 7.69% to Rs 1.92 crore.

PBDT rose 23.27% to Rs 27.44 crore. Provision for depreciation rose 6.17% to Rs 7.06 crore.

Profit before tax grew 30.56% to Rs 20.38 crore. Provision for tax was expense of Rs 6.12 crore, compared to Rs 3.73 crore. Effective tax rate was 30.03% compared to 23.89%.

Net profit attributable to owners of the company increased 20.03% to Rs 14.26 crore.

Capacity utilisation was 104% (excluding capacity lost due to fire) in Q2FY22 compared to 93% in Q2FY21

Equity capital stood at Rs 21.83 crore as of 30 September 2021 to Rs 21.83 crore as of 30 September 2020. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 42.24% as of 30 September 2021 compared to 40.91% as of 30 September 2020.

For year-to-date (YTD) results analysis

Net sales of Ganesha Ecosphere have increased 66.92% to Rs 446.27 crore. Operating profit margin has jumped from 7.27% to 11.14%, leading to 155.53% rise in operating profit to Rs 49.70 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 61.96% to 63.10%. Purchase of finished goods cost rose from 2.04% to 2.12%. Employee cost decreased from 7.24% to 5.65%. Other expenses fell from 21.55% to 18.64%. Power and Oil fuel cost fell from 10.14% to 8.48%.

Other income fell 18.11% to Rs 4.34 crore. PBIDT rose 118.34% to Rs 54.04 crore. Provision for interest rose 19.57% to Rs 4.95 crore. PBDT rose 138.19% to Rs 49.09 crore. Provision for depreciation rose 6.96% to Rs 14.13 crore. Profit before EO grew 372.43% to Rs 34.96 crore. The company reported EO expense of Rs 25.13 crore compared to nil in the corresponding previous year period. PBT after EO was up 33% to Rs 9.83 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. 25.13 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 expense of Rs 8.41 crore, compared to Rs 1.78 crore. Effective tax rate was 85.55% compared to 24.05%.

Net profit attributable to owners of the company decreased 74.73% to Rs 1.42 crore.

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 502.

Ganesha Ecosphere : Consolidated Results
Particulars	2109 (03)	2009 (03)	Var.(%)	2109 (06)	2009 (06)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	247.89	198.02	25	446.27	267.36	67	751.14	888.83	-15
OPM (%)	10.9	11.5		11.1	7.3		11.3	12.6
OP	26.94	22.84	18	49.7	19.45	156	84.49	111.69	-24
Other Inc.	2.42	1.5	61	4.34	5.3	-18	9.43	7.4	27
PBIDT	29.36	24.34	21	54.04	24.75	118	93.92	119.09	-21
Interest	1.92	2.08	-8	4.95	4.14	20	8.81	7.77	13
PBDT	27.44	22.26	23	49.09	20.61	138	85.11	111.32	-24
Depreciation	7.06	6.65	6	14.13	13.21	7	27.16	28.05	-3
PBT before EO	20.38	15.61	31	34.96	7.4	372	57.95	83.27	-30
EO Income	0	0		-25.13	0		0	0	-
PBT after EO	20.38	15.61	31	9.83	7.4	33	57.95	83.27	-30
Taxation	6.12	3.73	64	8.41	1.78	372	14.43	19.59	-26
PAT	14.26	11.88	20	1.42	5.62	-75	43.52	63.68	-32
Minority Interest (MI)	0	0		0	0		0	0	-
Net profit	14.26	11.88	20	1.42	5.62	-75	43.52	63.68	-32
PPA	0	0		0	0		0	0
Net Profit after PPA	14.26	11.88	20	1.42	5.62	-75	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 rises 553.62% in the June 2024 quarter
( Results - Announcements 10-Aug-24 15:41 )

Ganesha Ecosphere standalone net profit declines 61.87% in the March 2023 quarter
( Results - Announcements 25-May-23 14:41 )

Ganesha Ecosphere consolidated net profit declines 65.14% in the March 2023 quarter
( Results - Announcements 25-May-23 14:42 )

Board of Ganesha Ecosphere recommends Final Dividend
( Corporate News - 21-May-22 17:20 )

Ganesha Ecosphere consolidated net profit rises 147.87% in the March 2022 quarter
( Results - Announcements 21-May-22 17:50 )

Ganesha Ecosphere approves raising of funds
( Corporate News - 14-Aug-17 10:57 )

Ganesha Ecosphere standalone net profit rises 53.09% in the June 2019 quarter
( Results - Announcements 01-Aug-19 17:53 )

Ganesha Ecosphere to table results
( Corporate News - 04-Nov-19 11:11 )

Ganesha Ecosphere to table results
( Corporate News - 16-May-22 11:19 )

Ganesha Ecosphere standalone net profit rises 10.53% in the September 2014 quarter
( Results - Announcements 14-Nov-14 13:44 )

Ganesha Ecosphere to conduct board meeting
( Corporate News - 03-Aug-20 11:39 )