Capitaline

Results 10-Nov-22

Analysis

Gulshan Polyols

Disappointing performance

Gulshan Polyols standalone net sales declined 0.32% to Rs 276.38 crore in Q2FY23 compared to Q2FY22. Sales of Mineral Processing segment has gone down 4.26% to Rs 24.04 crore (accounting for 8.70% of total sales). Sales of Grain Processing segment has gone up 3.55% to Rs 206.86 crore (accounting for 74.84% of total sales). Sales of Distillsry segment fell 13.22% to Rs 45.48 crore (accounting for 16.46% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 70.57% to Rs 11.55 crore. PBIT of Mineral Processing segment rose 8.45% to Rs 4.07 crore (accounting for 35.28% of total PBIT). PBIT of Grain Processing segment fell 64.59% to Rs 8.99 crore (accounting for 77.81% of total PBIT). PBIT of Distillsry reported loss of Rs 1.51 crore compared to profit of Rs 10.10 crore.

PBIT margin of Mineral Processing segment rose from 14.96% to 16.95%. PBIT margin of Grain Processing segment fell from 12.71% to 4.34%. PBIT margin of Distillsry segment fell from 19.28% to 3.32%. Overall PBIT margin fell from 14.15% to 4.18%.

Operating profit margin has declined from 16.94% to 6.89%, leading to 59.46% decline in operating profit to Rs 19.04 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 49.77% to 59.60%. Purchase of finished goods cost fell from 0.71% to 0.70%. Other expenses rose from 29.21% to 30.16%.

Other income up 213.95% to Rs 1.35 crore. PBIDT fell 56.98% to Rs 20.39 crore. Provision for interest up 28.45% to Rs 1.49 crore.

PBDT fell 59.13% to Rs 18.9 crore. Provision for depreciation down 11% to Rs 7.12 crore.

Profit before tax down 69.19% to Rs 11.78 crore. Provision for tax was expense of Rs 2.69 crore, compared to Rs 9.87 crore. Effective tax rate was 22.84% compared to 25.81%.

Profit after tax fell 67.96% to Rs 9.09 crore.

Equity capital increased from Rs 4.69 crore as of 30 September 2021 to Rs 5.20 crore as of 30 September 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 66.65% as of 30 September 2022 compared to 68.20% as of 30 September 2021 .

For year-to-date (YTD) results analysis

Net sales of Gulshan Polyols have increased 5.96% to Rs 546.57 crore. Sales of Mineral Processing segment has gone up 10.58% to Rs 48.34 crore (accounting for 8.84% of total sales). Sales of Grain Processing segment has gone up 8.49% to Rs 407.44 crore (accounting for 74.55% of total sales). Sales of Distillsry segment fell 5.82% to Rs 90.79 crore (accounting for 16.61% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 64.19% to Rs 26.75 crore. PBIT of Mineral Processing segment rose 24.41% to Rs 7.76 crore (accounting for 29.01% of total PBIT). PBIT of Grain Processing segment fell 59.84% to Rs 20.10 crore (accounting for 75.15% of total PBIT). PBIT of Distillsry reported loss of Rs 1.11 crore compared to profit of Rs 18.41 crore.

PBIT margin of Mineral Processing segment rose from 14.27% to 16.05%. PBIT margin of Grain Processing segment fell from 13.33% to 4.93%. PBIT margin of Distillsry segment fell from 19.10% to 1.22%. Overall PBIT margin fell from 14.49% to 4.89%.

Operating profit margin has declined from 17.46% to 7.38%, leading to 55.21% decline in operating profit to Rs 40.35 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 49.69% to 58.90%. Purchase of finished goods cost rose from 0.59% to 0.94%. Employee cost decreased from 3.13% to 3.01%. Other expenses rose from 28.93% to 29.90%.

Other income up 116.67% to Rs 1.82 crore. PBIDT fell 53.62% to Rs 42.17 crore. Provision for interest up 30.30% to Rs 2.58 crore.

PBDT fell 55.49% to Rs 39.59 crore. Provision for depreciation down 8.93% to Rs 14.18 crore.

Profit before tax down 65.37% to Rs 25.41 crore. Provision for tax was expense of Rs 6.14 crore, compared to Rs 18.85 crore. Effective tax rate was 24.16% compared to 25.69%.

Profit after tax fell 64.66% to Rs 19.27 crore.

Equity capital increased from Rs 4.69 crore as of 30 September 2021 to Rs 5.20 crore as of 30 September 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 66.65% as of 30 September 2022 compared to 68.20% as of 30 September 2021 .

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 232.

Gulshan Polyols : Standalone Results
Particulars	2209 (03)	2109 (03)	Var.(%)	2209 (06)	2109 (06)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	276.38	277.28	0	546.57	515.84	6	1100.73	766.03	44
OPM (%)	6.9	16.9		7.4	17.5		13.6	17.0
OP	19.04	46.98	-59	40.36	90.09	-55	150.12	130.43	15
Other Inc.	1.35	0.43	215	1.82	0.84	115	2.05	2.61	-21
PBIDT	20.39	47.40	-57	42.18	90.94	-54	152.17	133.04	14
Interest	1.49	1.16	29	2.58	1.98	30	4.96	6.79	-27
PBDT	18.90	46.24	-59	39.60	88.96	-55	147.21	126.25	17
Depreciation	7.12	8.00	-11	14.18	15.57	-9	32.41	32.57	0
PBT	11.78	38.24	-69	25.42	73.38	-65	114.8	93.68	23
Taxation	2.69	9.87	-73	6.14	18.85	-67	29.55	31.56	-6
PAT	9.09	28.37	-68	19.27	54.53	-65	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)	2209 (03)	2109 (03)	Var.(%)	% of (Total)	2209 (06)	2109 (06)	Var.(%)	% of (Total)	2203 (12)	2103 (12)	Var.(%)
Sales
Distillery	16	45.483	52.410	-13	17	90.79	96.40	-6	18	197.29	132.7	49
Grain Processing	75	206.860	199.764	4	75	407.44	375.54	8	74	809.15	540.81	50
Mineral Processing	9	24.041	25.110	-4	9	48.34	43.90	10	9	94.1	92.37	2
Total Reported Sales	100	276.384	277.284	0	100	546.57	515.84	6	100	1,100.54	765.88	44
PBIT
Distillery	-13	-1.51	10.10	PL	-4	-1.11	18.41	PL	21	24.53	15.79	55
Grain Processing	78	8.99	25.38	-65	75	20.10	50.05	-60	69	81.41	66.31	23
Mineral Processing	35	4.07	3.76	8	29	7.76	6.24	24	11	12.79	17.29	-26
Total PBIT	100	11.55	39.24	-71	100	26.75	74.70	-64	100	118.73	99.39	19
Less : Interest		1.49	1.16	29		2.58	1.98	30		4.96	6.79	-27
Add: Other un-allcoable		1.72	0.16	983		1.25	0.67	88		1.03	1.08	-4
PBT		11.78	38.24	-69		25.42	73.38	-65		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 )

Gulshan Polyols consolidated net profit declines 54.21% in the March 2024 quarter
( Results - Announcements 21-May-24 17:48 )

Gulshan Polyols consolidated net profit declines 76.13% in the September 2023 quarter
( Results - Announcements 08-Nov-23 07:42 )

Gulshan Polyols
( Results - Analysis 10-Nov-22 13:40 )

Board of Gulshan Polyols recommends final dividend
( Corporate News - 21-May-24 17:20 )

Gulshan Polyols consolidated net profit rises 23.14% in the March 2023 quarter
( Results - Announcements 13-May-23 07:39 )

Gulshan Polyols grants 20,400 stock options
( Corporate News - 17-Sep-19 15:36 )

Gulshan Polyols standalone net profit rises 48.97% in the June 2015 quarter
( Results - Announcements 03-Aug-15 09:36 )

Gulshan Polyols allots 1.03 cr equity shares under bonus issue
( Corporate News - 23-Jun-23 18:59 )

Board of Gulshan Polyols recommends final dividend
( Corporate News - 13-May-23 10:51 )

Gulshan Polyols standalone net profit declines 75.36% in the September 2023 quarter
( Results - Announcements 08-Nov-23 07:39 )