Capitaline

Results 11-May-22

Analysis

Elantas Beck India

Solid earnings growth

Elantas Beck India standalone net sales increased 21.06% to Rs 156.27 crore in Q4FY22 compared to Q4FY21. Sales of Electrical Insulations segment has gone up 22.62% to Rs 132.24 crore (accounting for 84.19% of total sales). Sales of Engineering & Electronic Resins and segment has gone up 13.61% to Rs 24.83 crore (accounting for 15.81% of total sales).

Operating profit margin has declined from 19.69% to 19.33%, leading to 18.89% rise in operating profit to Rs 30.21 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 62.54% to 66.85%. Purchase of finished goods cost fell from 0.19% to 0.15%. Employee cost decreased from 5.90% to 4.96%. Other expenses fell from 11.68% to 9.68%.

Other income up 84.52% to Rs 4.41 crore. PBIDT rose 24.53% to Rs 34.62 crore. Provision for interest up 32% to Rs 0.33 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 20.32% to Rs 28.91 crore. PBIT of Electrical Insulations segment rose 15.22% to Rs 22.98 crore (accounting for 79.50% of total PBIT). PBIT of Engineering & Electronic Resins and segment rose 45.31% to Rs 5.93 crore (accounting for 20.50% of total PBIT).

PBIT margin of Electrical Insulations segment fell from 18.50% to 17.38%. PBIT margin of Engineering & Electronic Resins and segment rose from 18.66% to 23.87%. Overall PBIT margin fell from 18.52% to 18.40%.

PBDT rose 24.46% to Rs 34.29 crore. Provision for depreciation rose 5.92% to Rs 3.04 crore.

Profit before tax grew 26.62% to Rs 31.25 crore. Provision for tax was expense of Rs 7.54 crore, compared to Rs 6.56 crore. Effective tax rate was 24.13% compared to 26.58%.

Profit after tax rose 30.85% to Rs 23.71 crore.

Promoters’ stake was 75.00% as of 31 March 2022 compared to 75.00% as of 31 March 2021.

On March 6, 2019, the company was directed for closure of its operations in Ankleshwar by the Gujarat Pollution Control Board (GPCB) due to a suspected ground water contamination issue. The GPCB through its subsequent orders had granted temporary revocation of the closure order. As per the latest order, the GPCB has provided temporary revocation for further 6 months which will be due for further review in September 2022. The Company is representing to the GPCB for a permanent revocatio,fi1 .e aauce rand is doing all the necessary acts, deeds and formalities in that connection

Full year results analysis

Net sales of Elantas Beck India have increased 36.28% to Rs 522.13 crore. Operating profit margin has declined from 18.36% to 14.99%, leading to 11.27% rise in operating profit to Rs 78.27 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 55.84% to 67.46%. Purchase of finished goods cost fell from 4.58% to 0.26%. Employee cost decreased from 7.34% to 5.85%. Other expenses fell from 13.90% to 11.70%.

Other income fell 25.06% to Rs 16.33 crore. PBIDT rose 2.68% to Rs 94.6 crore. Provision for interest up 13.64% to Rs 0.25 crore. Loan funds remained nil.

Inventories rose to Rs 83.93 crore as of 31 December 2021 from Rs 52.68 crore as of 31 December 2020. Sundry debtors were higher at Rs 86.84 crore as of 31 December 2021 compared to Rs 70.51 crore as of 31 December 2020. Cash and bank balance declined from Rs 26.62 crore as of 31 December 2020 to Rs 17.64 crore as of 31 December 2021. Investments rose to Rs 261.35 crore as of 31 December 2021 from Rs 217.72 crore as of 31 December 2020 .

PBDT rose 2.65% to Rs 94.35 crore. Provision for depreciation rose 3.50% to Rs 12.11 crore. Fixed assets increased to Rs 79.40 crore as of 31 December 2021 from Rs 76.30 crore as of 31 December 2020. Intangible assets declined from Rs 44.07 crore to Rs 37.84 crore.

Profit before EO grew 2.53% to Rs 82.24 crore. The company reported net EO income of Rs 9.14 crore (Rs 19.19 crore towards profit on sale of office space at pimpri, Rs 9.6 crore of provision for capital advance and related expense incurred due to termination of project and Rs 44.44 lakh of loss due to fire accident) compared to nil EO items during the period. PBT after EO was up 14% to Rs 91.38 crore.

The company terminated the Memorandum of Understanding (MoU) which was entered with Talegaon industrial Parks Private Limited (TIPPL) for acquisition of land situated al Navlakhumbre, Tal Maval, Pune. The company has made a provision of Rs 9.60 crore for expenditure incurred so far in relation to this project.

Provision for tax was expense of Rs 24.5 crore, compared to Rs 18.45 crore. Effective tax rate was 26.81% compared to 23.00%. Profit after tax rose 8.29% to Rs 66.88 crore.

Promoters’ stake was 75.00% as of 31 December 2021 compared to 75.00% as of 31 December 2020.

0n March 6, 2019, the company was directed for closure of its operations in Ankleshwar by the Gujarat Pollution Control Board (GPCB) due to a suspected ground water contamination issue, The GPCB through its subsequent orders had granted temporary revocation of the closure order. The company is representing to the GPCB for a permanent revocation of the closure order.

The stock trades at Rs 3707.

Elantas Beck India : Standalone Results
Particulars	2203 (03)	2103 (03)	Var.(%)	2112 (12)	2012 (12)	Var.(%)
Net Sales	156.27	129.08	21	522.13	383.13	36
OPM (%)	19.3	19.7		15.0	18.4
OP	30.21	25.41	19	78.27	70.34	11
Other Inc.	4.41	2.39	85	16.33	21.79	-25
PBIDT	34.62	27.8	25	94.6	92.13	3
Interest	0.33	0.25		0.25	0.22	14
PBDT	34.29	27.55	24	94.35	91.91	3
Depreciation	3.04	2.87	6	12.11	11.7	4
PBT before EO	31.25	24.68	27	82.24	80.21	3
EO Income	0	0		9.14	0	-
PBT after EO	31.25	24.68	27	91.38	80.21	14
Taxation	7.54	6.56	15	24.5	18.45	33
PAT	23.71	18.12	31	66.88	61.76	8
EPS (Rs)*	#	#		75.9	77.9	-3
bps : Basis points
* EPS is on current equity of Rs 7.93 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

Elantas Beck India : Standalone Segment Results
	% of (Total)	2203 (03)	2103 (03)	Var.(%)	% of (Total)	2112 (12)	2012 (12)	Var.(%)
Sales
Electrical Insulations	84	132.24	107.85	23	84	440.29	340.5	29
Engineering & Electronic Resins and Materials	16	24.83	21.85	14	16	84.39	44.84	88
Total Reported Sales	100	157.07	129.7	21	100	524.69	385.35	36
Less: Inter segment revenues		0	0	-		0	0	-
Net Sales		157.07	129.7	21		524.69	385.35	36
PBIT
Electrical Insulations	80	22.98	19.95	15	82	59.92	57.87	4
Engineering & Electronic Resins and Materials	21	5.93	4.08	45	18	12.8	6.73	90
Total PBIT	100	28.91	24.03	20	100	72.72	64.59	13
Less : Interest		0.33	0.25	33		0.25	0.22	14
Add: Other un-allcoable		2.67	0.9	196		18.91	15.84	19
PBT		31.25	24.68	27		91.38	80.21	14

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