Capitaline

Results 14-Jul-24

Analysis

Plastiblends India

Improved performance

Net sales (including other operating income) of Plastiblends India has increased 8.13% to Rs 211.58 crore. Domestic markets witnessed low double digit volume growth. There was subdued demand for plastic and polymer in Q1. After urban markets, now rural markets are showing signs of revival, driven by increased consumer spending and heightened business activity. Export markets have witnessed remarkably high double digit volume growth.

To meet the increase in demand of Black Masterbatch, the company had augmented black capacity in last financial year which is getting utilized at optimum level. The company is contemplating augmentation of further capacity in black as well as other families.

The company is currently exploring additional solar capacity on rooftop as well as ground mounted up to 6000 KWP (existing rooftop solar capacity is 1420 KWP).

Operating profit margin has jumped from 6.71% to 7.71%, leading to 24.30% rise in operating profit to Rs 16.32 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 75.51% to 74.56%. Employee cost increased from 4.82% to 4.95%. Other expenses fell from 12.88% to 12.77%.

Other income up 81.20% to Rs 2.41 crore. PBIDT rose 29.53% to Rs 18.73 crore. Provision for interest up 280% to Rs 0.38 crore.

PBDT rose 27.79% to Rs 18.35 crore. Provision for depreciation down 3.61% to Rs 3.74 crore.

Profit before tax grew 39.41% to Rs 14.61 crore. Provision for tax was expense of Rs 3.76 crore, compared to Rs 2.83 crore. Effective tax rate was 25.74% compared to 27.00%.

Profit after tax rose 41.83% to Rs 10.85 crore.

Promoters’ stake was 64.38% as of 30 June 2024 ,compared to 63.37% as of 30 June 2023.

Commenting on the performance, Shri S. N. Kabra, Chairman & Managing Director said, “Good growth momentum was observed in Q1. The trend is expected to continue going forward”.

“The strategic initiative undertaken for capturing the additional market share, enhancing operational efficiency and prudent financial disciplinary strategy have played a pivotal role improving the margins.”

“The general elections outcome have ensured policy continuity, promising continued support and growth opportunities for the plastic/masterbatch sector.”

“Government initiatives like "Make in India", “Atmanirbhar Bharat”, “Vocal for Local”, "Smart City Plan" and “Har Ghar Jal (Jal Jeevan Mission)” etc. are impelling growth to the India`s masterbatch industry.”

“Company is committed to create long-term value for its stakeholders and is confident in its ability to handle external challenges and grow sustainably”

Full year results analysis

Net sales (including other operating income) of Plastiblends India has increased 4.38% to Rs 802.16 crore. Operating profit margin has jumped from 6.48% to 6.80%, leading to 9.49% rise in operating profit to Rs 54.56 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 77.03% to 75.59%. Employee cost increased from 4.76% to 4.84%. Other expenses rose from 11.68% to 12.76%.

Other income up 57.01% to Rs 8.18 crore. PBIDT rose 13.99% to Rs 62.74 crore. Provision for interest fell 44.81% to Rs 1.17 crore. Loan funds declined from Rs 8.71 crore as of 31 March 2023 to Rs 7.81 crore as of 31 March 2024. Inventories rose to Rs 125.70 crore as of 31 March 2024 from Rs 121.63 crore as of 31 March 2023. Sundry debtors were lower at Rs 87.99 crore as of 31 March 2024 compared to Rs 91.12 crore as of 31 March 2023. Cash and bank balance rose to Rs 3.07 crore as of 31 March 2024 from Rs 2.50 crore as of 31 March 2023. Investments rose to Rs 70.68 crore as of 31 March 2024 from Rs 67.22 crore as of 31 March 2023 .

PBDT rose 16.35% to Rs 61.57 crore. Provision for depreciation down 6.27% to Rs 15.4 crore. Fixed assets declined from Rs 180.80 crore as of 31 March 2023 to Rs 176.94 crore as of 31 March 2024. Intangible assets declined from Rs 0.13 crore to Rs 0.11 crore.

Profit before tax grew 26.53% to Rs 46.17 crore. Provision for tax was expense of Rs 11.64 crore, compared to Rs 9.64 crore. Effective tax rate was 25.21% compared to 26.42%.

Profit after tax rose 28.60% to Rs 34.53 crore.

Promoters’ stake was 64.38% as of 31 March 2024 ,compared to 63.37% as of 31 March 2023 .

Cash flow from operating activities decreased to Rs 38.06 crore for year ended March 2024 from Rs 72.31 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 12.30 crore, compared to Rs 8.13 crore during the year ended March 2023.

The stock trades at Rs 315

Plastiblends India : Standalone Results
Particulars	2406 (03)	2306 (03)	Var.(%)	2403 (12)	2303 (12)	Var.(%)
Net Sales	211.58	195.67	8	802.16	768.52	4
OPM (%)	7.7	6.7		6.8	6.5
OP	16.32	13.13	24	54.56	49.83	9
Other Inc.	2.41	1.33	81	8.18	5.21	57
PBIDT	18.73	14.46	30	62.74	55.04	14
Interest	0.38	0.1	280	1.17	2.12	-45
PBDT	18.35	14.36	28	61.57	52.92	16
Depreciation	3.74	3.88	-4	15.4	16.43	-6
PBT	14.61	10.48	39	46.17	36.49	27
PBT before EO	14.61	10.48	39	46.17	36.49	27
EO Income	0	0		0	0	-
PBT after EO	14.61	10.48	39	46.17	36.49	27
Taxation	3.76	2.83	33	11.64	9.64	21
PAT	10.85	7.65	42	34.53	26.85	29
EPS (Rs)*	#	#		13.3	10.3
Notes
* EPS is on current equity of Rs 12.99 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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