Acrysil tumbles after Q2 PAT slides 48% YoY

Acrysil fell 6.85% to Rs 491.70 after the company's consolidated net profit fell 47.7% to Rs 9.25 crore on 16.6% increase in net sales to Rs 139.20 crore in Q2 September 2022 over Q2 September 2021.

On a consolidated basis, profit before tax (PBT) fell 43.3% year-on-year to Rs 12.73 crore in Q2 September 2022. EBITDA fell 23% to Rs 22.7 crore during the quarter. EBITDA margin stood at 16.3% in Q2 FY23 lower than 24.4% in Q2 FY22.

Total expense jumped 25.6% YoY to Rs 122.93 crore in Q2 FY23. Cost of raw material consumed stood at Rs 57.23 crore (up 17.1% YoY) and employee expenses stood at Rs 10.51 crore (up 18.5% YoY). Finance cost surged 91.5% to Rs 3.81 crore during the period under review.

Net cash generated from operating activities stood at Rs 59.21 crore in six months ended 30 September 2022, higher than Rs 37.17 crore in six months ended 30 September 2021.

The company said that in Q2FY23, it witnessed a periodic slowdown phase in exports market due to higher than usual inventory levels maintained during COVID period by our customers. The higher inventory level built up by sales channels are getting liquidated. Hence, the company expects ordering level for quartz sinks to increase from Q4FY23 onwards.

Given the current global operating environment, the board has decided to postpone the expansion of additional 200,000 capacity of quartz sinks. Looking at the rising demand for built in kitchen appliances the board has decided to utilize the resources for manufacturing/assembling of 200,000 built-in kitchen appliances to become Atmanirbhar in built-in-kitchen appliances segment. This expansion will take place in 2 phases i.e., 100,000 units in Q1FY24 and balance 100,000 units in Q3FY24.

With effect from 26 October 2022, the company's name has changed to 'CARYSIL' from Acrysil.

Chirag Parekh, chairman & managing director said, "The operating environment where in some of the largest economies continue to grapple with inflation and energy crisis in Europe, had led to muted demand in Q2FY23. However, given the channel destocking and the manufacturing cost pressures on our peers, we are confident of step up in demand in coming quarters.

We are experiencing strong demand for faucets from exports customers including like of Grohe and IKEA.

The acquisition of Tickford Orange limited, holding company of its operating subsidiary Sylmar Technology Limited, have strengthened our presence in UK market and opened new channels for selling our kitchen sinks. The business has performed well during the quarter.

We are launching bio-green sinks in Paris in month of December 2022. Further, we have developed a new range of quartz sinks with twice the strength of existing ones, which will reduce the packaging costs, improve loadability and thereby reduce overall shipping costs. We at Acrysil are very excited for the coming future and remain confident of continuing on our stated growth path."

Carysil is one of the largest producers of quartz kitchen sinks in the world, under its brand Carysil. It also makes stainless steel sinks, faucets, food waste disposer units; and kitchen appliances such as hobs, cooktops, ovens, wine chillers, and dishwashers.

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