HSIL slumps ~7% despite turnaround in Q1 PAT to Rs11.26cr

The company’s revenue jumps to Rs416cr, up by 65% yoy, maintaining strong EBITDA margins of 15.4%.

Jul 29, 2021 12:07 IST India Infoline News Service

HSIL Limited, India’s leading Packaging company delivered a resilient performance in the first quarter and reported a total income of Rs420cr compared to Rs255cr in the same quarter last year, registering a growth of 64% on yoy basis.

The company delivered an EBITDA of Rs65cr, registering a growth of 128% yoy. EBITDA margins improved from 11.1% in Q1FY21 to 15.4% in Q1FY22. Reported PBT in Q1FY22 is Rs17cr, compared to a loss of Rs26cr in the same quarter last year. Profit After Tax increased 164.9% yoy to Rs11.26cr in Q1FY22 from a loss of Rs17.35cr in Q1FY21.

At around 12.14 PM, HSIL Ltd was trading at Rs254.60 per piece down by Rs18.3 or 6.71% from its previous closing of Rs272.90 per piece on the BSE. The scrip opened at Rs270 and has touched a high and low of Rs270 and Rs250.75 respectively.

“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,” company said in a filing on Wednesday.

The Packaging Products Division reported Revenue from Operations of Rs293cr, contributing 70% to the total revenue with a growth of 54% on yoy basis. The Building Products Division delivered Revenue from Operations of Rs123cr, registering a growth of 105%.

“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,” Sandip Somany, Vice Chairman and Managing Director, HSIL Limited, said.

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.”

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