Capitaline

Results 21-May-22

Analysis

Gulshan Polyols

Expects topline of Rs 2300 crore in FY24

Gulshan Polyols standalone net sales increased 28.54% to Rs 292.23 crore in Q4FY22 compared to Q4FY21. Sales of Mineral Processing segment has gone up 10.10% to Rs 27.06 crore (accounting for 9.26% of total sales). Sales of Grain Processing segment has gone up 35.87% to Rs 212.66 crore (accounting for 72.77% of total sales). Sales of Ethanoi (Bio-Fuel)Distillery segment rose 13.54% to Rs 52.51 crore (accounting for 17.97% of total sales).

Operating profit margin has declined from 18.74% to 8.52%, leading to 41.53% decline in operating profit to Rs 24.91 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 46.48% to 52.32%. Purchase of finished goods cost rose from 0.05% to 1.22%. Employee cost decreased from 5.47% to 4.25%. Other expenses rose from 28.95% to 33.73%.

Other income fell 46.08% to Rs 1.1 crore. PBIDT fell 41.73% to Rs 26.01 crore. Provision for interest fell 29.59% to Rs 1.38 crore.

PBDT fell 42.29% to Rs 24.63 crore. Provision for depreciation down 1.85% to Rs 8.48 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 50.53% to Rs 17.40 crore. PBIT of Mineral Processing segment fell 0.21% to Rs 3.80 crore (accounting for 21.84% of total PBIT). PBIT of Grain Processing segment fell 51.54% to Rs 11.92 crore (accounting for 68.51% of total PBIT). PBIT of Ethanoi (Bio-Fuel)Distillery segment fell 75.18% to Rs 1.68 crore (accounting for 9.65% of total PBIT).

PBIT margin of Mineral Processing segment fell from 15.49% to 14.04%. PBIT margin of Grain Processing segment fell from 15.71% to 5.60%. PBIT margin of Ethanoi (Bio-Fuel)Distillery segment fell from 14.63% to 3.20%. Overall PBIT margin fell from 15.47% to 5.95%.

Profit before tax down 52.56% to Rs 16.15 crore. Provision for tax was expense of Rs 4.48 crore, compared to Rs 12.84 crore. Effective tax rate was 27.74% compared to 37.72%.

Profit after tax fell 44.95% to Rs 11.67 crore.

Equity capital increased from Rs 4.96 crore as of 31 March 2021 to Rs 5.20 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 64.86% as of 31 March 2022 compared to 68.20% as of 31 March 2021.

Management comment- Dr. Chandra Kumar Jain Chairman & Managing Director

“The year 2021 has outlined the need of being prepared, adaptive, and resilient It is my pleasure to report that Gulshan Polyols has performed exceptionally amid the unprecedented challenges posed by the Covid 19 Pandemic We made transformative organizational changes over the year that allowed us to weather the storm and emerge as a faster growing organization.

GPL has accelerated its expansion plan in both existing and new geographies, emphasizing growth potential in the Indian bio ethanol space. Our theme- Expanding Potential, underpins our focus strategies and demonstrates our commitment to a sustainable tomorrow.

Full year results analysis

Net sales of Gulshan Polyols have increased 43.69% to Rs 1,100.73 crore. Sales of Mineral Processing segment has gone up 1.86% to Rs 94.10 crore (accounting for 8.55% of total sales). Sales of Grain Processing segment has gone up 49.62% to Rs 809.15 crore (accounting for 73.52% of total sales). Sales of Ethanoi (Bio-Fuel)Distillery segment rose 48.68% to Rs 197.29 crore (accounting for 17.93% of total sales).

Operating profit margin has declined from 17.03% to 13.64%, leading to 15.10% rise in operating profit to Rs 150.12 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 47.48% to 51.26%. Purchase of finished goods cost rose from 0.62% to 0.85%. Employee cost decreased from 3.78% to 3.30%. Other expenses rose from 30.94% to 30.96%.

Other income fell 21.46% to Rs 2.05 crore. PBIDT rose 14.38% to Rs 152.17 crore. Provision for interest fell 26.95% to Rs 4.96 crore. Loan funds rose to Rs 111.96 crore as of 31 March 2022 from Rs 10.53 crore as of 31 March 2021. Inventories rose to Rs 107.90 crore as of 31 March 2022 from Rs 90.45 crore as of 31 March 2021. Sundry debtors were higher at Rs 119.62 crore as of 31 March 2022 compared to Rs 98.38 crore as of 31 March 2021. Cash and bank balance rose to Rs 123.08 crore as of 31 March 2022 from Rs 19.93 crore as of 31 March 2021. Investments rose to Rs 25.86 crore as of 31 March 2022 from Rs 0.90 crore as of 31 March 2021 .

PBDT rose 16.60% to Rs 147.21 crore. Provision for depreciation down 0.49% to Rs 32.41 crore. Fixed assets increased to Rs 331.17 crore as of 31 March 2022 from Rs 246.62 crore as of 31 March 2021. Intangible assets declined from Rs 0.09 crore to Rs 0.07 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 19.45% to Rs 118.73 crore. PBIT of Mineral Processing segment fell 26.06% to Rs 12.79 crore (accounting for 10.77% of total PBIT). PBIT of Grain Processing segment rose 22.77% to Rs 81.41 crore (accounting for 68.57% of total PBIT). PBIT of Ethanoi (Bio-Fuel)Distillery segment rose 55.34% to Rs 24.53 crore (accounting for 20.66% of total PBIT).

PBIT margin of Mineral Processing segment fell from 18.72% to 13.59%. PBIT margin of Grain Processing segment fell from 12.26% to 10.06%. PBIT margin of Ethanoi (Bio-Fuel)Distillery segment rose from 11.90% to 12.43%. Overall PBIT margin fell from 12.98% to 10.79%.

Profit before tax grew 22.54% to Rs 114.80 crore. Provision for tax was expense of Rs 29.55 crore, compared to Rs 31.56 crore. Effective tax rate was 25.74% compared to 33.69%.

Profit after tax rose 37.23% to Rs 85.25 crore.

Equity capital increased from Rs 4.96 crore as of 31 March 2021 to Rs 5.20 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 64.86% as of 31 March 2022 compared to 68.20% as of 31 March 2021.

Cash flow from operating activities decreased to Rs 64.40 crore for year ended March 2022 from Rs 97.51 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 117.02 crore, compared to Rs 14.65 crore during the year ended March 2021.

QIP update

On March 24 2022 the Board of Directors of Gulshan Polyols Ltd has approved the allotment of 2416000 Equity shares to eligible qualified institutional buyers at the issue price of 326 48 per Equity Share (including a premium of 325 48 to the face value of 1 per Equity Share) which is at a discount of 5 %%(i e 17 18 per Equity Share), to the Floor Price of 343 66 aggregating to 78 87 75 680 (Rupees Seventy Eight Crore Eighty Seven Lakh Seventy Five Thousand Six Hundred Eighty Only) pursuant to the issue. The issue opened on March 21 2022 and closed on March 24 2022. Pursuant to the allotment of equity shares in the QIP, the paid up equity share capital of the company stands increased to 49333020 comprising of 49 333 020 equity shares of face value of 1 each

Capex Update

The company is looking at a total capex of 450 crore over the next 12 months, out of which Rs 300 crore will be required to set up the 500 KLPD ethanol plant in the state of M P and Rs 150 crore will be required for expanding the aggregate capacities across the grain processing division

The company expects trial run and commissioning of ethanol plant in December 2022.

The company has a loan approval of Rs 170 crore from HSBC bank to set up the 500 KLPD Ethanol plant in M P out of which company has taken the first disbursement of Rs 50 crore on 09 th march 2022 It has also successfully raised Rs 78.87 crore through QIP placement of its equity shares on 24th March 2022.

The company has already placed orders for plant and machinery of Rs 180 crore out of which approximately Rs 130 crore has already been spent by the company to set up the 500 KLPD Ethanol plant in MP. Balance investment will be completed by October 22.

The company has placed orders for plant and machinery and construction work of Rs 60 crore in grain processing division

The company has started land and site developmental work at its Goalpara site at Assam for setting up a 250 klpd Ethanol plant to take care of its next leg of growth.

The company expects total revenues of Rs 2300 crore in FY24 - Rs 1000 crore from ethanol and distillery segment, Rs 1200 crore from grain processing and Rs 100 crore from mineral processing.

The scrip is currently trading at Rs 283.

Gulshan Polyols : Standalone Results
Particulars	2203 (03)	2103 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	292.23	227.35	29	1100.73	766.03	44
OPM (%)	8.5	18.7		13.6	17.0
OP	24.91	42.6	-42	150.12	130.43	15
Other Inc.	1.1	2.04	-46	2.05	2.61	-21
PBIDT	26.01	44.64	-42	152.17	133.04	14
Interest	1.38	1.96	-30	4.96	6.79	-27
PBDT	24.63	42.68	-42	147.21	126.25	17
Depreciation	8.48	8.64	-2	32.41	32.57	0
PBT	16.15	34.04	-53	114.8	93.68	23
Taxation	4.48	12.84	-65	29.55	31.56	-6
PAT	11.67	21.2	-45	85.25	62.12	37
EPS (Rs)*	#	#		16.4	11.9
Notes
* EPS is on current equity of Rs 5.2 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Gulshan Polyols : Standalone Segment Results
	% of (Total)	2203 (03)	2103 (03)	Var.(%)	% of (Total)	2203 (12)	2103 (12)	Var.(%)
Sales
Mineral Processing	9	27.06	24.58	10	9	94.1	92.37	2
Grain Processing	73	212.66	156.52	36	74	809.15	540.81	50
Ethanoi (Bio-Fuel)Distillery	18	52.51	46.25	14	18	197.29	132.7	49
Total Reported Sales	100	292.23	227.35	29	100	1,100.54	765.88	44
Less: Inter segment revenues		0	0	-		0	0	-
Net Sales		292.23	227.35	29		1,100.54	765.88	44
PBIT
Mineral Processing	22	3.8	3.81	0	11	12.79	17.29	-26
Grain Processing	69	11.92	24.59	-52	69	81.41	66.31	23
Ethanoi (Bio-Fuel)Distillery	10	1.68	6.77	-75	21	24.53	15.79	55
Total PBIT	100	17.4	35.17	-51	100	118.73	99.39	19
Less : Interest		1.38	1.96	-30		4.96	6.79	-27
Add: Other un-allcoable		0.12	0.84	-85		1.03	1.08	-4
PBT		16.14	34.04	-53		114.8	93.68	23

Previous News

Gulshan Polyols standalone net profit rises 24.68% in the March 2023 quarter
( Results - Announcements 13-May-23 07:38 )

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