Huhtamaki PPL Q2 Review - Raw Material, One-Time Costs Dent Margins; Recovery In H2: Systematix
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
Huhtamaki PPL Ltd.’s Q2 CY21 result was below our estimate with net revenue/Ebitda growth of 3%/down 65% YoY and negative profit after tax of Rs 35 million.
Revenue growth was price-led, as volumes declined ~17% YoY (calculated) due to disruption in production and demand slowdown in some key pockets due to lockdowns.
Operating profit margin slipped to an all-time low of 3.4% versus 10.1% YoY due to additional costs of Rs 85 million at the Thane plant with no associated revenues and a continued rise in the prices of key raw materials.
Huhtamaki PPL passes on raw material cost inflation with a one to three months lag and has a total inventory cycle of one month.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.