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Results
12-Aug-22
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Analysis
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Rupa & Company
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Net sales down 1.5% YoY, PAT down 54.3% YoY in Q1FY2023
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On consolidated basis
Quarter ended June 2022 compared
with Quarter ended June 2021.
Net sales (including other operating
income) of Rupa & Company has declined 1.51% to Rs 214.67
crore.
Operating profit margin has declined
from 19.33% to 8.61%, leading to 56.12% decline in operating profit to Rs 18.49
crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 49.58% to 55.54%. Purchase of finished
goods cost fell from 3.37% to 1.38%. Employee cost increased from
4.71% to 4.94%. Other expenses rose from 28.55% to 32.84%.
Contract job process charges rose from 19.40% to 20.05%.
Other
income rose 177.72% to Rs 5.61 crore. PBIDT fell 45.43% to Rs 24.1
crore. Provision for interest rose 79.32% to Rs 5.81
crore.
PBDT
fell 55.30% to Rs 18.29 crore. Provision for depreciation fell 3.22%
to Rs 3.31 crore.
Profit
before tax down 60.05% to Rs 14.98 crore. Share of profit/loss were
nil in both the periods. Provision for tax was expense of Rs 2.53
crore, compared to Rs 10.28 crore. Effective tax rate was 16.89%
compared to 27.41%.
Minority interest was nil in both
the periods. Net profit attributable to owners of the company
decreased 54.26% to Rs 12.45 crore.
Promoters’
stake was 73.28% as of 30 June 2022 ,compared to 73.28% as of 30 June 2021
.
Full year results analysis.
Net sales (including other operating
income) of Rupa & Company has increased 12.30% to Rs 1474.14
crore.
Operating profit margin has declined
from 19.60% to 18.22%, leading to 4.35% rise in operating profit to Rs 268.54
crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 39.77% to 46.42%. Purchase of finished
goods cost rose from 2.38% to 2.79%. Employee cost decreased from
4.35% to 4.11%. Other expenses fell from 32.28% to 30.47%.
Contract job process charges fell from 19.96% to 19.76%.
Other
income rose 47.87% to Rs 10.78 crore. PBIDT rose 5.55% to Rs 279.32
crore. Provision for interest rose 39.39% to Rs 18.72
crore. Loan funds rose to Rs 369.87 crore as of 31 March 2022 from
Rs 161.45 crore as of 31 March 2021. Inventories rose to Rs 583.03
crore as of 31 March 2022 from Rs 390.58 crore as of 31 March 2021. Sundry
debtors were higher at Rs 547.33 crore as of 31 March 2022 compared to Rs
364.41 crore as of 31 March 2021. Cash and bank balance rose to Rs
123.74 crore as of 31 March 2022 from Rs 118.40 crore as of 31 March
2021.
PBDT
rose 3.74% to Rs 260.6 crore. Provision for depreciation rose 0.73%
to Rs 13.89 crore. Fixed assets increased to Rs 231.12 crore as of
31 March 2022 from Rs 206.42 crore as of 31 March 2021. Intangible
assets declined from Rs 6.03 crore to Rs 5.57 crore.
Profit
before tax grew 3.92% to Rs 246.71 crore. Share of profit/loss were
nil in both the periods. Provision for tax was expense of Rs 54.87
crore, compared to Rs 62.15 crore. Effective tax rate was 22.24%
compared to 26.18%.
Minority
interest was nil in both the periods. Net profit attributable to
owners of the company increased 9.46% to Rs 191.84 crore.
Equity
capital stood at Rs 7.96 crore as of 31 March 2022 to Rs 7.96 crore as of 31
March 2021. Per share face Value remained same at Rs
1.00.
Promoters’
stake was 73.28% as of 31 March 2022 ,compared to 73.28% as of 31 March 2021
.
Cash
flow from operating activities has turned negative Rs 116.06 crore for year
ended March 2022 from positive Rs 210.59 crore for year ended March
2021. Cash flow used in acquiring fixed assets during the year ended
March 2022 stood at Rs 37.29 crore, compared to Rs 22.69 crore during the year
ended March 2021.
Management Commentary
Commenting on the
Results, Mr. Vikash
Agarwal, Director
said:
“After delivering
high growth
for two
consecutive years
and registering
highest Revenue
& PAT in
preceding year,
our growth
this quarter
has been
flat. We
took a calibrated price hike
to bring
our prices
in-line with
rising raw
material costs,
this enabled
us to
sustain our
gross margins. In
the first
quarter devoid
of any
Covid related
disruptions, our
costs were
back to
pre-Covid levels. We
have also
invested heavily
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