Consumer Products, Glass Packaging Business Lift HSIL’s Q3 Results
The revenue growth was largely driven by products business that grew at about 55 percent on a yearly basis, said Sandeep Sikka.
HSIL Ltd. said higher sales in consumer products and glass packaging business, as well as strong performance of new segments buoyed the sanitaryware firm’s quarterly results.
“There are manyfold reasons for this [revenue growth],” HSIL’s Chief Financial Officer Sandeep Sikka said. The revenue rose 27 percent to Rs 735.7 crore in the December-ended quarter, according to the company’s exchange filing. This, Sikka said, was largely driven by its products business that grew at about 55 percent on a yearly basis.
“The second reason is the growth of our glass packaging business, that has grown at around 30 percent year-on-year,” Sikka told BloombergQuint, adding that the Hindwarehomes brand owner also started various new initiatives such as its security caps and closures unit and the pipes segment, which also contributed to the rise in sales.
“In the first nine months, we could clock [in] Rs 117 crore of turnover on pipes—which includes the sales during the pre-operative periods. But, now the run rate of pipes itself is running at around Rs 15 crore to Rs 16 crore per month,” he added Sikka said that due to certain issues in its glass packaging business, fuel price hike and rupee depreciation in the first half of 2019, he expects full-year margin to come between 13-14 percent.
Other Highlights:
- Expanding business to various new segments helped margin improvement.
- Expects Chlorinated polyvinyl chloride or CPVC pipe business to remain stable
- More reliant on domestic market
- Exports contribute 8-9 percent to HSIL’s revenue
- Expects some fluctuations in the unplasticised polyvinyl chloride or UPVC and polyvinyl chloride or PVC pipes business
Q3 Result Highlights (YoY)
- Revenue rises 27 percent to Rs 735.7 crore
- Net profit shoots up 63.5 percent to Rs 25.5 crore
- Ebitda jumps 47.8 percent at Rs 107.3 crore
- Margin widens to 14.6 percent from 12.5 percent
- Had an exceptional loss of Rs 7 crore in the base quarter