Huhtamaki India slides after reporting weak Q1 numbers

Huhtamaki India dropped 7.92% to Rs 319.20 after the company's net profit declined 26.66% to Rs 26.03 crore in Q1 CY24 as compared with Rs 35.49 crore in Q1 CY23.

Revenue from operations fell 7.77% YoY to Rs 610.2 crore in Q1 CY24.

Profit before tax shed by 0.23% to Rs 35.08 crore in Q1 CY24 from Rs 35.16 crore in Q1 CY23.

Net sales stood at Rs 593.7 crore, declining 8% compared with Q1 CY23. The company reported EBIT at Rs 39.9 crore representing a decline of 5% compared to the corresponding period of last year. EBIT margin stood at 6.7% in Q1 CY24.

Dhananjay Salunkhe, managing director, said, The company had a muted start to the year with Revenue declining by 8% during the quarter Y-o-Y majorly attributable to external supply chain factors. However EBIT % age has increased marginally from 6.5% to 6.7% of sales.

During the quarter, the company has commissioned its new blueloop facility within the Silvassa plant which will help provide a fillip in delivering sustainable packaging solutions. The Company continues its focus on driving world class operations within its manufacturing network and delivering customer excellence.

Huhtamaki India is subsidiary of Huhtami Oyj, a leading global provider of sustainable packaging solutions for consumers around the world. It is a global food packaging specialist, headquartered in Espoo, Finland. Its products include paper and plastic disposable tableware, such as cups, plates and containers for quick service restaurants, coffee shops, retail stores, caterers and vending operators.

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