|
Gulshan
Polyols standalone net sales increased 13.25% to Rs 270.18 crore in Q1FY23
compared to Q1FY22 backed by healthy growth across three segment. Sales of
Mineral Processing segment has gone up 30.62% to Rs 24.30 crore (accounting for
8.99% of total sales). Sales of Grain
Processing segment has gone up 14.11% to Rs 200.58 crore (accounting for 74.24%
of total sales). Sales of Distillsry
segment rose 2.98% to Rs 45.30 crore (accounting for 16.77% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 57.14% to
Rs 15.20 crore. PBIT of Mineral
Processing segment rose 48.61% to Rs 3.68 crore (accounting for 24.24% of total
PBIT). PBIT of Grain Processing segment
fell 54.96% to Rs 11.11 crore (accounting for 73.13% of total PBIT). PBIT of Distillsry segment fell 95.19% to Rs
0.40 crore (accounting for 2.63% of total PBIT).
PBIT
margin of Mineral Processing segment rose from 13.33% to 15.16%. PBIT margin of Grain Processing segment fell
from 14.03% to 5.54%. PBIT margin of
Distillsry segment fell from 18.88% to 0.88%.
Overall PBIT margin fell from 14.87% to 5.62%.
Operating
profit margin has declined from 18.09% to 7.89%, leading to 50.59% decline in
operating profit to Rs 21.32 crore primarily led by commodity cost headwinds
faced by the industry on account of continued high inflation in the prices of
basic raw materials, rice and maize. Further, global supply chain issues
related to coal supply has also led to significant increase in power cost which
impacted the margin. Raw material cost as a % of total sales (net of stock
adjustments) increased from 49.60% to 58.16%.
Purchase of finished goods cost rose from 0.45% to 1.20%. Employee cost decreased from 3.42% to 3.15%. Other expenses rose from 28.61% to
29.62%.
Other
income up 14.63% to Rs 0.47 crore. PBIDT
fell 49.98% to Rs 21.79 crore. Provision
for interest up 32.93% to Rs 1.09 crore.
PBDT
fell 51.57% to Rs 20.7 crore. Provision
for depreciation down 6.74% to Rs 7.06 crore.
Profit
before tax down 61.22% to Rs 13.64 crore.
Provision for tax was expense of Rs 3.45 crore, compared to Rs 8.98
crore. Effective tax rate was 25.29%
compared to 25.53%.
Profit
after tax fell 61.09% to Rs 10.19 crore.
Promoters’
stake was 66.65% as of 30 June 2022 compared to 68.20% as of 30 June 2021.
Commenting on the
performance of Q1 FY23, Dr. Chandra Kumar Jain, Chairman and Managing Director,
Gulshan Polyols Ltd. Said
“We
are happy to share with you our financial and business performance for Q1 FY23,
revenue from operations stood at Rs 270.18 crore showing a growth of 13.3% on
YOY basis predominantly driven by good growth across our three business
segment. We have managed to achieve good growth across all the three segment
during the quarter.
In
each of the segment we witnessed robust and satisfying demand. One of the key
challenges faced by us during the quarter was the rising price of coal and
other input costs. The global coal crisis has led to an increase in our power
cost. Further, overall inflation headwinds impacted our basic raw material prices
as well thereby putting stress on our EBITDA margins on a yearly basis. We
expect the raw material related cost pressures to start easing out from third
quarters onwards as we witness fresh harvesting of kharif crops and some
respite in coal cost. Further, we continue to take steps in direction of
sustaining and further improving our operating margins with operational
efficiencies, capacity augmentation and upgradation in our Ethanol & Grain
Processing segment.
Our
grain processing segment is steadily recording an increased market share of our
product offerings and increased utilization of our plant capacities.
Specifically, our product, sorbitol (70%), maize starch and fructose syrup are
market leaders and continue to show decent growth. We are continually adding
newer products to market which are highly effective and efficient for their
intended purposes. In view of robust demand and high product acceptance, we are
on track of adding of around 20% capacities across facilities in this segment.
Our
Ethanol manufacturing facility is running at an elevated capacity utilization
of >100% owing to secular demand for ethanol as per the government’s EBPP. We are also happy to share
that we are on track in executing our capex plans for setting up of ethanol plant
of 500 KLPD (expected to commence in FY23) and 250 KLPD (expected to commence
in FY24) in Madhya Pradesh and Assam respectively. We envisage a capex of Rs
485 crore for the two facilities of which Rs 300 crore will be deployed in FY23
and the balance will be deployed by FY24. The Company has already entered in
long term supply arrangement with OMCs for supply of ethanol from these plants
after commercialization.
Our
mineral processing segment despite being a stable business, continues to grow
owing to our expertise in providing diversified and value-added solutions and
services related to Wet Ground Calcium Carbonate (WGCC), Ground Calcium
Carbonate (GCC) and on-site Precipitated Calcium Carbonate (PCC). The Contract
with Meghna Pulp and Paper Mills Limited has helped us to establish a stronger
foothold in the market.
Going
ahead, our focus is to grow the EBITDA Margin by increasing contribution from
higher margin products and by building cost efficiency through procurement and
operational processes. Further, we will continue to broaden our product range
by continually investing in value added products and R&D processes.
As
we move forward in seizing the growth opportunities that lie ahead of us, we
would like to thank our employees for their continuous efforts and our
investors / stakeholders for their continued support and encouragement.”
Capex Updates
The
company is undertaking a capex of Rs 4,85 crore for expanding capacities in the
ethanol segment. Of this Rs 300 crore will be required to set up the 500 KLPD
ethanol plant in the state of M.P. during FY23 and Rs 185 crore will be
required for setting up 250 KLPD ethanol plant in the state of Assam over FY23
and FY24. The aforementioned capital expenditure is proceeding as planned.
In
the grain processing segment, Company is expanding its aggregate capacities by
around 20%. The budgeted capex for same is Rs 150 crore. The company is
progressing well on the said capex.
Business Updates
The
Oil Marketing Companies (OMCs) - HPCL, IOCL and BPCL have confirmed a six-month
relief scheme from 1st June, 2022 to 30th November, 2022, to support the
ethanol manufacturers challenged with high input cost, primarily on account of
fuel and electricity. The relief is supportive of profit margins and reflects
another show of positive intent of the OMCs to achieve objectives of ethanol
blending program.
The
company has signed a contract with Meghna Pulp & Paper Mills Limited for
supplying GCC, GCC Coating plant, Vibrator Separating Machine with standard
accessories and spare parts for USD 27,80,000. This will strengthen the
Company’s position in the market.
Debt
disbursed out of sanctioned amount of Rs 170 crore stands at Rs 46.9 crore. The
major part of this was used for capex related to ethanol plant.
Guidance
Management
is expecting a revenue of Rs 2300 crore by FY24 and Rs 28,00 crore by FY25, on
back of significant capacity expansion in Ethanol segment.
The
company is expected to have an EBITDA margin of around 13% to 14% over FY 23
& FY 24.
With
the addition of capacities in the ethanol segment, the revenue mix will change.
Currently, around 75% of the revenue is contributed by grain processing
segment, about 18% from ethanol processing segment and balance 7% from mineral
processing segment. After commissioning of new capacities, management is
expecting around 50% revenue from ethanol segment and balance 50% from grain
processing segment. The contribution from mineral processing segment will
gradually decrease.
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.
The
scrip is currently trading at Rs 240.
|
Gulshan Polyols : Standalone Results
|
|
Particulars
|
2206 (03)
|
2106 (03)
|
Var.(%)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Net Sales
|
270.18
|
238.56
|
13
|
1100.73
|
766.03
|
44
|
|
OPM (%)
|
7.9
|
18.1
|
|
13.6
|
17.0
|
|
|
OP
|
21.32
|
43.15
|
-51
|
150.12
|
130.43
|
15
|
|
Other Inc.
|
0.47
|
0.41
|
15
|
2.05
|
2.61
|
-21
|
|
PBIDT
|
21.79
|
43.56
|
-50
|
152.17
|
133.04
|
14
|
|
Interest
|
1.09
|
0.82
|
33
|
4.96
|
6.79
|
-27
|
|
PBDT
|
20.7
|
42.74
|
-52
|
147.21
|
126.25
|
17
|
|
Depreciation
|
7.06
|
7.57
|
-7
|
32.41
|
32.57
|
0
|
|
PBT
|
13.64
|
35.17
|
-61
|
114.8
|
93.68
|
23
|
|
Taxation
|
3.45
|
8.98
|
-62
|
29.55
|
31.56
|
-6
|
|
PAT
|
10.19
|
26.19
|
-61
|
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)
|
2206 (03)
|
2106 (03)
|
Var.(%)
|
% of (Total)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Sales
|
|
Mineral Processing
|
9
|
24.3
|
18.6
|
31
|
9
|
94.1
|
92.37
|
2
|
|
Grain Processing
|
74
|
200.58
|
175.78
|
14
|
74
|
809.15
|
540.81
|
50
|
|
Distillery
|
17
|
45.3
|
43.99
|
3
|
18
|
197.29
|
132.7
|
49
|
|
Total Reported Sales
|
100
|
270.18
|
238.37
|
13
|
100
|
1,100.54
|
765.88
|
44
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
-
|
|
Net Sales
|
|
270.18
|
238.37
|
13
|
|
1,100.54
|
765.88
|
44
|
|
PBIT
|
|
Mineral Processing
|
24
|
3.68
|
2.48
|
49
|
11
|
12.79
|
17.29
|
-26
|
|
Grain Processing
|
73
|
11.11
|
24.67
|
-55
|
69
|
81.41
|
66.31
|
23
|
|
Distillery
|
3
|
0.4
|
8.3
|
-95
|
21
|
24.53
|
15.79
|
55
|
|
Total PBIT
|
100
|
15.2
|
35.45
|
-57
|
100
|
118.73
|
99.39
|
19
|
|
Less : Interest
|
|
1.09
|
0.82
|
33
|
|
4.96
|
6.79
|
-27
|
|
Add: Other un-allcoable
|
|
-0.47
|
0.53
|
PL
|
|
1.03
|
1.08
|
-4
|
|
PBT
|
|
13.64
|
35.17
|
-61
|
|
114.8
|
93.68
|
23
|
|