HSIL revenue jumps to ₹416 crore, up by 65% YoY, maintaining strong EBITDA margins of 15.4%

HSIL Limited, India's leading Packaging company delivered a resilient performance in the first quarter and reported a Total Income of ₹420 crore compared to ₹255 crore in the same quarter last year, registering a growth of 64% on Y-o-Y basis. The company delivered EBITDA of ₹65 crore, registering a growth of 128% on y-o-y basis. EBITDA margins improved from 11.1% in Q1 FY21 to 15.4% in Q1 FY22. Reported PBT in Q1 FY22 is ₹17 crore, compared to a loss of ₹26 crore in the same quarter last year.

Both business divisions registered year-on-year revenue growth, despite restrictions imposed by the state government on account of the second wave of Covid-19. The Packaging Products Division reported Revenue from Operations of ₹293 crore, contributing 70% to the total revenue with a growth of 54% on Y-o-Y basis. The Building Products Division delivered Revenue from Operations of ₹123 crore, registering a growth of 105%.

Financial Performance Highlights: Q1 FY2022

- Total income of ₹420 crore, growth of 64% on Y-o-Y basis
- EBITDA of ₹65 crore, growth of 128% on Y-o-Y basis with EBITDA margins of 15.4%
- EBIT of ₹33 crore with EBIT margins of 7.9%
- PBT of ₹17 crore with margins of 4.1%

The Packaging Products Division saw increased volumes and demand for glass bottles from alcohol, food, and beverages on YoY basis. EBIT margins improved from 8.9% in Q1 FY21 to 13.3% in Q1 FY22. The margins were driven by higher sales, better product mix, and operational efficiencies at the plants.

Commenting on the quarterly results, Mr. Sandip Somany, Vice Chairman and Managing Director, HSIL Limited said: "The first quarter of the fiscal year started on a subdued note due to the second wave of Covid-19. The top line was clearly impacted as state-wise lockdowns resulted in muted demand from key end-user industries such as alcohol, food, and beverages in the packaging segment and lower demand from the construction & infrastructure sector impacting building products segment. During the quarter, we continued to focus on maintaining higher operational efficiencies and our cost control measures."

He further added, "We bounced back quickly from lockdown 1.0 and delivered strong growth in FY 2021. In near term, we are optimistic that economic recovery is expected to normalize the demand and going ahead, we will deliver profitable and sustainable growth."

At HSIL, focus on manufacturing excellence is a core pillar of business sustainability, which has been recognized and appreciated by the industry. Recently, AGI Glaspac, the glass containers business was awarded "Best in Class Manufacturing Award (Glass Manufacturing)" by the National Feathers Touch and the company also received ISO 50001:2018 Energy Management System Certificate.

Shares of HSIL LTD. was last trading in BSE at Rs. 272.7 as compared to the previous close of Rs. 271.4. The total number of shares traded during the day was 25358 in over 1436 trades.

The stock hit an intraday high of Rs. 282.85 and intraday low of 271. The net turnover during the day was Rs. 7020015.

Source : Equity Bulls

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