HSIL Q3 PAT skids 21% YoY to Rs 28 cr

HSIL's standalone net profit dropped 20.7% to Rs 28.49 crore on a 18% jump in net sales to Rs 638.75 crore in Q3 FY22 over Q3 FY21.

The Q3 result was announced at the fag end of market hours yesterday, 27 January 2022.

Standalone profit before tax (PBT) skid 11.6% to Rs 45.17 crore in Q3 FY22 from Rs 51.08 crore in Q3 FY21. The company delivered an EBITDA of Rs 96 crore with a margin of 15% in Q3 FY22. The EBIT and PBT for the quarter stood at Rs 61 crore and Rs 45 crore respectively, during the quarter.

The company registered a Y-o-Y (year-on-year) revenue growth despite a high base of a comparative quarter in last year which saw pent-up demand post COVID-19. The company continued to maintain strong profitability margins amidst the raw material and fuel price inflation present over the last few quarters and expects the situation to normalize going ahead, supported by partial cost absorption by the market and as such will reduce pressure on margins.

On a segmental revenue basis, the Packaging Products division reported a revenue from operations of Rs 398 crore, contributing 62% to the total revenue with a growth of 10% on a Y-o-Y basis. Glass containers for alcoholic beverages such as beer and wine saw an increasing demand in the market. The growth is on the back of higher sales, optimized product mix, and enhanced operational efficiencies at the plants.

The Building Products division delivered revenue from operations of Rs 243 crore, registering a growth of 35% Y-o-Y. The division saw improvement on a Y-o-Y basis driven by favorable macro-economic factors.

Recently, HSIL approved the divestment of its Building Products division to Brilloca, a wholly owned subsidiary of Somany Home Innovation (SHIL) in a slump sale transaction for a cash consideration of Rs 630 crore, subject to shareholder and other statutory approvals. The Building Products division's entire operating facilities will be transferred to Brilloca. HSIL will focus on the expansion of its packaging business and capitalize on the growing opportunities present in this sector.

Shares of HSIL advanced 2.03% to Rs 316 on BSE. HSIL is a packaging products company that manufactures and markets various packaging products, including glass containers and polyethylene terephthalate (PET) bottles, products & security caps, and closures.

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