Capitaline

Results 10-May-23

Analysis

Elantas Beck India

Improved margins

Elantas Beck India standalone net sales increased 8.43% to Rs 169.44 crore in Q1CY23 compared to Q1CY22. Sales of Electrical Insulations segment has gone up 10.09% to Rs 145.59 crore (accounting for 85.69% of total sales). Sales of Engineering & Electronic Resins and segment has gone down 2.07% to Rs 24.31 crore (accounting for 14.31% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 18.14% to Rs 34.15 crore. PBIT of Electrical Insulations segment rose 17.01% to Rs 26.89 crore (accounting for 78.75% of total PBIT). PBIT of Engineering & Electronic Resins and segment rose 22.49% to Rs 7.26 crore (accounting for 21.25% of total PBIT).

PBIT margin of Electrical Insulations segment rose from 17.38% to 18.47%. PBIT margin of Engineering & Electronic Resins and segment rose from 23.87% to 29.86%. Overall PBIT margin rose from 18.40% to 20.10%.

Operating profit margin has jumped from 19.33% to 21.01%, leading to 17.84% rise in operating profit to Rs 35.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 66.85% to 62.32%. Purchase of finished goods cost fell from 0.15% to 0.14%. Employee cost increased from 4.96% to 5.59%. Other expenses rose from 9.68% to 10.84%.

Other income up 76.64% to Rs 7.79 crore. PBIDT rose 25.33% to Rs 43.39 crore. Provision for interest fell 63.64% to Rs 0.12 crore.

PBDT rose 26.19% to Rs 43.27 crore. Provision for depreciation down 5.92% to Rs 2.86 crore.

Profit before tax grew 29.31% to Rs 40.41 crore. Provision for tax was expense of Rs 10.36 crore, compared to Rs 7.54 crore. Effective tax rate was 25.64% compared to 24.13%.

Profit after tax rose 26.74% to Rs 30.05 crore.

Promoters’ stake was 75.00% as of 31 March 2023 compared to 75.00% as of 31 March 2022 .

Full year results analysis

Net sales (including other operating income) of Elantas Beck India has increased 23.47% to Rs 644.70 crore. Sales of Electrical Insulations segment has gone up 22.62% to Rs 539.90 crore (accounting for 83.48% of total sales). Sales of Engineering & Electronic Resins and segment has gone up 26.61% to Rs 106.86 crore (accounting for 16.52% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 47.68% to Rs 107.39 crore. PBIT of Electrical Insulations segment rose 36.16% to Rs 81.59 crore (accounting for 75.98% of total PBIT). PBIT of Engineering & Electronic Resins and segment rose 101.63% to Rs 25.80 crore (accounting for 24.02% of total PBIT).

PBIT margin of Electrical Insulations segment rose from 13.61% to 15.11%. PBIT margin of Engineering & Electronic Resins and segment rose from 15.16% to 24.15%. Overall PBIT margin rose from 13.86% to 16.61%.

Operating profit margin has jumped from 14.99% to 17.65%, leading to 45.37% rise in operating profit to Rs 113.78 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.46% to 66.35%. Purchase of finished goods cost rose from 0.26% to 0.32%. Employee cost decreased from 5.85% to 5.44%. Other expenses fell from 11.70% to 10.20%.

Other income up 8.02% to Rs 17.64 crore. PBIDT rose 38.92% to Rs 131.42 crore. Provision for interest up 148% to Rs 0.62 crore. Loan funds remained nil. Inventories declined from Rs 83.93 crore as of 31 December 2021 to Rs 79.85 crore as of 31 December 2022. Sundry debtors were higher at Rs 102.39 crore as of 31 December 2022 compared to Rs 86.84 crore as of 31 December 2021. Cash and bank balance rose to Rs 42.27 crore as of 31 December 2022 from Rs 17.64 crore as of 31 December 2021. Investments rose to Rs 356.29 crore as of 31 December 2022 from Rs 261.35 crore as of 31 December 2021 .

PBDT rose 38.63% to Rs 130.8 crore. Provision for depreciation rose 2.31% to Rs 12.39 crore. Fixed assets declined from Rs 79.40 crore as of 31 December 2021 to Rs 79.36 crore as of 31 December 2022. Intangible assets declined from Rs 37.84 crore to Rs 31.69 crore.

Profit before tax grew 43.98% to Rs 118.41 crore. Extraordinary items were increased to Rs 10.72 crore. Provision for tax was expense of Rs 31.35 crore, compared to Rs 24.5 crore. Effective tax rate was 24.28% compared to 26.81%.

Profit after tax rose 46.20% to Rs 97.78 crore.

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

Cash flow from operating activities increased to Rs 82.95 crore for year ended December 2022 from Rs 28.51 crore for year ended December 2021. Cash flow used in acquiring fixed assets during the year ended December 2022 stood at Rs 7.43 crore, compared to Rs 11.10 crore during the year ended December 2021.

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 until September 22, 2022. The company is representing to the GPCB for a permanent revocation of the closure order.

The stock trades at Rs 5898.

Elantas Beck India : Standalone Results
Particulars	2303 (03)	2203 (03)	Var.(%)	2212 (12)	2112 (12)	Var.(%)
Net Sales	169.44	156.27	8	644.70	522.13	23
OPM (%)	21.0	19.3		17.6	15.0
OP	35.60	30.21	18	113.78	78.27	45
Other Inc.	7.79	4.41	77	17.64	16.33	8
PBIDT	43.39	34.62	25	131.42	94.60	39
Interest	0.12	0.33		0.62	0.25	147
PBDT	43.27	34.29	26	130.80	94.35	39
Depreciation	2.86	3.04	-6	12.39	12.11	2
PBT before EO	40.41	31.25	29	118.41	82.24	44
EO Income	0.00	0.00	LP	10.72	9.14	17
PBT after EO	40.41	31.25	29	129.13	91.38	41
Taxation	10.36	7.54	37	31.35	24.50	28
PAT	30.05	23.71	27	97.78	66.88	46
EPS (Rs)*	#	#		113.1	75.9	49
Notes
* 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)	2303 (03)	2203 (03)	Var.(%)	% of (Total)	2212 (12)	2112 (12)	Var.(%)
Sales
Electrical Insulations	86	145.59	132.24	10	83	539.9	440.29	23
Engineering & Electronic Resins and	14	24.31	24.83	-2	17	106.86	84.39	27
Total Reported Sales	100	169.9	157.07	8	100	646.76	524.69	23
Less: Inter segment revenues		0	0	-		0	0	-
Net Sales		169.9	157.07	8		646.76	524.69	23
PBIT
Electrical Insulations	79	26.89	22.98	17	76	81.59	59.92	36
Engineering & Electronic Resins and	21	7.26	5.93	22	24	25.8	12.8	102
Total PBIT	100	34.15	28.91	18	100	107.39	72.72	48
Less : Interest		0.12	0.33	-64		0.62	0.25	148
Add: Other un-allcoable		6.38	2.67	139		22.35	18.91	18
PBT		40.42	31.25	29		129.13	91.38	41

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