EPL Q4 Review - Margins Likely To Recover In Coming Quarters: ICICI Securities
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ICICI Securities Report
EPL Ltd.’s Q4 FY21 revenue beat was 5.3%, largely on raw material inflation while gross profit was 1.5% higher and Ebitda miss was 9.3%.
Long-term contracts allow raw material inflation pass-through with three-month lag, which should catch up in subsequent quarters.
Company is also undertaking multiple measures to expand margins in FY22, which looks good.
Acquisition of Creative Stylo Packs Ltd. has helped increase revenue growth and we expect more acquisitions going forward.
We are also impressed with the company’s efforts on sustainability through its Platina range of recyclable tubes, which could be a key competitive differentiator in the market.
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