Q4FY18 Result: Essel Propack PAT remains muted, recommends 1:1 bonus

Essel Propack reported results for the quarter ended March 31, 2018.

The company’s consolidated revenue for the quarter came in at Rs. 628.4 crore, remains almost flat compared to Rs. 634 crore in corresponding quarter last year. Further, in constant currency terms, the quarter revenue growth was at 1.9 per cent for the quarter and 7.7 per cent for the year.

EBITDA for the quarter fell by 3.5 per cent yoy to Rs. 116.22 crore with a corresponding margin contraction of 49 bps. EBITDA margin for the quarter stood at 18.5 per cent. This margin contraction was led by around 5.7 per cent yoy jump in cost of materials.

The PAT for the quarter came in at Rs. 45.47 crore, registering marginal decline of 1.3 per cent yoy.

Looking at the full year numbers, we see that revenue jumped by 2 per cent to reach Rs. 2,446.42 crore while EBITDA rose by 10 per cent to Rs. 464.75 crore. Company reported net profit of Rs. 174.21 crore, down 11 per cent yoy.

The Q4FY18 growth has been muted due to continued lower offtake during start of the quarter in India Beauty & Cosmetics and Pharma categories linked to GST rate change during Q3FY18. However, Europe revenue is showing signs of recovery.

The board of directors have recommended a dividend of Rs. 2.4 per equity share for the face value of Rs. 2 each. Also, the board has approved bonus issue in the ratio of 1:1.

On Friday, the stock opened at Rs. 282 per share and touched an intra-day high and low of Rs. 287 and Rs. 270, respectively, on the BSE.