|
Gulshan
Polyols standalone net sales increased 39.94% to Rs 292.66 crore in Q3FY22
compared to Q3FY21. Sales of Mineral
Processing segment has gone down 15.11% to Rs 23.32 crore (accounting for 7.97%
of total sales). Sales of Grain Processing segment has gone up 52.30% to Rs
220.96 crore (accounting for 75.50% of total sales). Sales of Ethanoi (Bio-Fuel) Distillery
segment rose 32.29% to Rs 48.38 crore (accounting for 16.53% of total
sales).
Operating
profit margin has declined from 17.38% to 12.03%, leading to 3.16% decline in
operating profit to Rs 35.20 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
46.31% to 52.91%. Purchase of finished
goods cost fell from 1.23% to 0.92%.
Employee cost decreased from 3.01% to 2.63%. Other expenses fell from 32.57% to
31.68%.
Other
income fell 23.08% to Rs 0.1 crore.
PBIDT fell 3.23% to Rs 35.3 crore.
Profit before interest, tax and other unallocable items (PBIT) has
slumped 5.41% to Rs 26.63 crore. PBIT of
Mineral Processing segment fell 50.73% to Rs 2.75 crore (accounting for 10.32%
of total PBIT). PBIT of Grain Processing
segment rose 21.62% to Rs 19.44 crore (accounting for 72.99% of total
PBIT). PBIT of Ethanoi (Bio-Fuel) Distillery
segment fell 32.58% to Rs 4.44 crore (accounting for 16.69% of total
PBIT).
PBIT
margin of Mineral Processing segment fell from 20.31% to 11.79%. PBIT margin of Grain Processing segment fell
from 11.02% to 8.80%. PBIT margin of
Ethanoi (Bio-Fuel) Distillery segment fell from 18.03% to 9.19%. Overall PBIT margin fell from 13.46% to
9.10%.
Provision
for interest up 90.48% to Rs 1.6 crore.
PBDT fell 5.44% to Rs 33.7 crore.
Provision for depreciation rose 1.46% to Rs 8.35 crore.
Profit
before tax down 7.52% to Rs 25.35 crore.
Provision for tax was expense of Rs 6.22 crore, compared to Rs 8.81
crore. Effective tax rate was 24.54%
compared to 32.14%. Profit after tax rose 2.85% to Rs 19.13 crore.
Promoters’
stake was 68.20% as of 31 December 2021 compared to 68.20% as of 31 December
2020.
For year-to-date (YTD)
results analysis
Net
sales of Gulshan Polyols have increased 50.09% to Rs 808.50 crore. Sales of Mineral Processing segment has gone
down 1.12% to Rs 67.04 crore (accounting for 8.29% of total sales). Sales of Grain Processing segment has gone up
55.22% to Rs 596.50 crore (accounting for 73.80% of total sales). Sales of Ethanoi (Bio-Fuel) Distillery
segment rose 67.48% to Rs 144.78 crore (accounting for 17.91% of total
sales).
Operating
profit margin has declined from 16.30% to 15.51%, leading to 42.80% rise in
operating profit to Rs 125.42 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
47.89% to 50.88%. Purchase of finished
goods cost fell from 0.90% to 0.71%.
Employee cost decreased from 3.08% to 2.94%. Other expenses fell from 31.77% to 29.93%.
Other
income was up 64.91% to Rs 0.94 crore.
PBIDT rose 42.94% to Rs 126.36 crore. Profit before interest, tax and
other unallocable items (PBIT) have jumped 57.77% to Rs 101.33 crore. PBIT of Mineral Processing segment fell
33.36% to Rs 8.99 crore (accounting for 8.87% of total PBIT). PBIT of Grain Processing segment rose 66.58%
to Rs 69.49 crore (accounting for 68.58% of total PBIT). PBIT of Ethanoi (Bio-Fuel) Distillery segment
rose 153.16% to Rs 22.85 crore (accounting for 22.55% of total PBIT).
PBIT
margin of Mineral Processing segment fell from 19.89% to 13.40%. PBIT margin of Grain Processing segment rose
from 10.86% to 11.65%. PBIT margin of
Ethanoi (Bio-Fuel)Distillery segment rose from 10.44% to 15.79%. Overall PBIT margin rose from 11.93% to
12.54%.
Provision
for interest fell 25.88% to Rs 3.58 crore.
PBDT rose 46.92% to Rs 122.78 crore.
Provision for depreciation down 0.08% to Rs 23.91 crore.
Profit
before tax grew 65.78% to Rs 98.87 crore.
Provision for tax was expense of Rs 25.07 crore, compared to Rs 18.73
crore. Effective tax rate was 25.36%
compared to 31.41%.Profit after tax rose 80.40% to Rs 73.80 crore.
Promoters’
stake was 68.20% as of 31 December 2021,compared to 68.20% as of 31 December
2020.
Commenting on the
quarterly results, Dr. Chandra Kumar Jain, Chairman & Managing Director of Gulshan
Polyols, said,
It is really appreciable that your Company is
emerging stronger and healthier and is scaling new heights. During the quarter,
we worked diligently by assuring employees safety while continiuing to serve
our customers by running our operations successfully. The 9 months results
demonstrate that our business strategy is working well which is evident by
revenue growth of 50% in 9MFY22 . I am glad to say that we are setting new
precedents and marking higher from our own performance and financial numbers
and moving ahead quarter on quarter.
Among
other segments; the Grain Processing business has grown significantly as it has
contributed to a revenue growth by Rs 21220.82 lakh in 9MFY22 vs 9MFY11, up by
55% of comparative total revenue growth, due to good and continuous demand.
Furhther the ethanol and distillery segment is doing well in producing and supply of
ethanol to oil marketing companies and other public sector companies. It has
contributed into revenue growth by Rs 5833.64 lakhs in 9MFY22 vs 9MFY21 which
is at 67%.
Growth
continues accelerating in Q3 with resilient operating margins. Your company is
combatting the global coal crisis which has led to increase in power and fuel
cost by 70%, and in addition to this, a rise in raw material price by 33% in
Q3FY22 (YOY) has affected the profitability and hence the bottomline. Despite
that, Company is continuously focusing on achieving its targets by constantly
improving its sales volumes, sales price realization and optimizing cost
wherever possible. A sequential growth
in revenues and a consistent demand in
the Grain processing and Ethanol segment, is driving growth for the Company.
Simultaneously,
we continue to strengthen employees value proposition including health and
wellness measures, re-skilling programs, appropriate compensation
interventions, ESOPs and enhanced career growth opportunities. Our recent
priority has been to vaccinate our employees with agility and we have been
holding various vaccination drives at our plants across the country, towards
this endeavor. I am happy to report that at
present more than 70%
of our employees are vaccinated
across the organization with at least one shot of the Vaccine.
I
feel overjoyed to reiterate and announce that the Company has signed and
executed a Long Term Offtake Agreement on January 8, 2022, for our upcoming
Standalone dedicated ethanol plant of 500 KLPD at M P A K V N Industrial Area,
Boregaon, Madhya Pradesh and 250 KLPD Ethanol Plant at Industrial Growth
Centre, Matia, District Goalpara, Assam for supply of 8.91 Crores Liters and
3.96 Crores Liters per annum
"Indigenous Denatured Anhydrous Ethanol", respectively to Oil
Marketing Companies (OMCs) under Ethanol Blending Petroleum Program to meet
ethanol requirements for 20 % blending by year 2025 by using corn/maize and
rice combination. This is achievable due to constant conviction and faith of
all Stakeholders in the Company.
We
are proud, that our strengthened Boardroom and Executive team have demonstrated
expert leadership, and our employees are demonstrating commitment in delivering
higher volumes. We are setting up and expanding your company for its next phase
of growth as construction is going on in full swing
in Madhya Pradesh 500 KLPD Ethanol plant. The orders for major plant and
machinery have already been placed.
Additional land has
been purchased around
surrounding areas to
fulfill operational requirements and to support expansion. Company has also started the land and site
development work at its Assam Location for setting up a 250 KLPD Ethanol plant.
The
recovery in demand is getting better Quarter on Quarter, credible resumption of
supply chain and logistics, cost & cash management and a vigorous boost in
production has helped us to deliver strong performance. The three quarters or
say 3/4 of FY22, already delivered desired results, reflecting a sequential
growth, signaling an awe-inspiring year ahead for the company which would
definitely built us in achieving our targeted vision
I
wish to extend my gratitude to all employees, customers, suppliers, bankers,
investors and other stakeholders who have equally contributed in the
exceptional growth of your Company.
Business/Future Outlook
by company
§ Construction and other related
activities are at full swing for Madhya Pradesh 500 KLPD Ethanol Plant. The
company believe to commence production soon in 2023.
§ The company has also started the land
and site development work at its Assam Location for setting up a 250 KLPD
Ethanol plant.
§ Recently, Finance minister, Nirmala
Sitharaman said in her Budget speech that blended fuel is a priority for government. To
encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential
excise duty with effect from 1st day of October
2022. Petrol not blended with ethanol will be costlier from October,
which would prompt retailers, especially private oil companies, to switch to
blended fuel across the country.
§ The company is on track with its
expansion plans at Grain Processing Units located at Muzaffarnagar and Bharuch.
§ The company is seeing improvement in
demand quarter by quarter including Q3 22. Overall, it expects strong and
positive performance in all its segments in last quarter too.
The
scrip is currently trading at Rs 422.
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Gulshan Polyols : Standalone Results
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Particulars
|
2112 (03)
|
2012 (03)
|
Var.(%)
|
2112 (09)
|
2012 (09)
|
Var.(%)
|
2103 (12)
|
2003 (12)
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Var.(%)
|
|
Net Sales
|
292.66
|
209.13
|
40
|
808.5
|
538.69
|
50
|
766.03
|
620.8
|
23
|
|
OPM (%)
|
12.0
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17.4
|
|
15.5
|
16.3
|
|
17.1
|
11.1
|
|
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OP
|
35.2
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36.35
|
-3
|
125.42
|
87.83
|
43
|
130.73
|
68.87
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90
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|
Other Inc.
|
0.1
|
0.13
|
-23
|
0.94
|
0.57
|
65
|
1.87
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0.95
|
97
|
|
PBIDT
|
35.3
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36.48
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-3
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126.36
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88.4
|
43
|
132.6
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69.82
|
90
|
|
Interest
|
1.6
|
0.84
|
90
|
3.58
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4.83
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-26
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6.55
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11.38
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-42
|
|
PBDT
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33.7
|
35.64
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-5
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122.78
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83.57
|
47
|
126.05
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58.44
|
116
|
|
Depreciation
|
8.35
|
8.23
|
1
|
23.91
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23.93
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0
|
32.55
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31.02
|
5
|
|
PBT
|
25.35
|
27.41
|
-8
|
98.87
|
59.64
|
66
|
93.5
|
27.42
|
241
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Taxation
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6.22
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8.81
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-29
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25.07
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18.73
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34
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31.04
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6.84
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354
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PAT
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19.13
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18.6
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3
|
73.80
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40.91
|
80
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62.46
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20.58
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204
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EPS (Rs)*
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#
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#
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|
#
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#
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|
13.3
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4.4
|
|
|
Notes
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* EPS is on current equity of Rs 4.69 crore, Face value of Rs 1,
Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate Database
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Gulshan Polyols : Standalone Segment Results
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% of (Total)
|
2112 (03)
|
2012 (03)
|
Var.(%)
|
% of (Total)
|
2112 (09)
|
2012 (09)
|
Var.(%)
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% of (Total)
|
2103 (12)
|
2003 (12)
|
Var.(%)
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|
Sales
|
|
|
|
|
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Mineral Processing
|
8
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23.32
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27.48
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-15
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8
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67.04
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67.8
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-1
|
12
|
92.37
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131.45
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-30
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|
Grain Processing
|
76
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220.96
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145.08
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52
|
74
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596.5
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384.29
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55
|
71
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540.81
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484.31
|
12
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Ethanoi (Bio-Fuel)Distillery
|
17
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48.38
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36.57
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32
|
18
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144.78
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86.44
|
67
|
17
|
132.7
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5.04
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2530
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Total Reported Sales
|
100
|
292.66
|
209.13
|
40
|
100
|
808.32
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538.53
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50
|
100
|
765.88
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620.8
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23
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PBIT
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|
|
|
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Mineral Processing
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10
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2.75
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5.58
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-51
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9
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8.99
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13.48
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-33
|
17
|
17.29
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32.91
|
-47
|
|
Grain Processing
|
73
|
19.44
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15.98
|
22
|
69
|
69.49
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41.72
|
67
|
67
|
66.31
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10.92
|
507
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|
Ethanoi (Bio-Fuel)Distillery
|
17
|
4.44
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6.59
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-33
|
23
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22.85
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9.03
|
153
|
16
|
15.79
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-4.73
|
LP
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|
Total PBIT
|
100
|
26.63
|
28.16
|
-5
|
100
|
101.33
|
64.23
|
58
|
100
|
99.39
|
39.1
|
154
|
|
Less : Interest
|
|
1.6
|
0.84
|
90
|
|
3.58
|
4.83
|
-26
|
|
6.55
|
11.38
|
-42
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Add: Other un-allcoable
|
|
0.32
|
0.1
|
232
|
|
1.12
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0.24
|
369
|
|
0.65
|
-0.3
|
LP
|
|
PBT
|
|
25.35
|
27.41
|
-8
|
|
98.87
|
59.64
|
66
|
|
93.5
|
27.42
|
241
|
|