ICICI Direct: Wim Plast - Q1 Performance Hit By Pandemic Lockdown
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Wim Plast Ltd. reported a sluggish Q1 FY21 performance. However, this was perceived to be due to nationwide lockdown.
We believe the company would have lost almost 40 days of sales amid lockdown. As a result, revenue in Q1 FY21 fell 75% YoY to Rs 23 crore.
Plastic segment (approximately 87% of revenue) revenue fell 73% YoY while other segment (includes extrusion sheet, moulds, air cooler) revenue fell 83% YoY.
On the margin front, gross margin declined approximately 600 basis points YoY mainly due to adverse product mix.
However significant saving in other expenditure, employee cost that were down 66%, 46% YoY respectively, helped restrict losses at Ebitda level at Rs 12 lakh only.
Finally, Win Plast reported bottomline loss of Rs 1.5 crore in Q1 FY21.
We believe a sales recovery post ease in lockdown restrictions coupled with market share gains from unorganised pie would be key monitorables for the Company, going forward.
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 brokerage 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.