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Motilal Oswal: Essel Propack Delivers Strong Quarter Amid Weak Environment 

Motilal Oswal: Essel Propack Delivers Strong Quarter Amid Weak Environment

Essel Propack manufactures seven billion laminated tubes annually which are used in the consumer goods, pharma and packaged food industries. (Source: Company Website)
Essel Propack manufactures seven billion laminated tubes annually which are used in the consumer goods, pharma and packaged food industries. (Source: Company Website)

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Motilal Oswal Report

Essel Propack Ltd. reported strong growth (13.6% constant currency growth) across geographies amid the Covid-19 crisis, primarily led by East Asia Pacific (EAP) and Europe.

The ramp-up in operations led to an increase in operating leverage in EAP and Europe. Profit after tax doubled on the back of higher operating profit.

Revenue increased by 18% YoY to Rs 7.4 billion (estimate Rs 6.6 billion), primarily led by strong performance in EAP and Europe.

Ebitda margins expanded by 250 basis point YoY to 19.8% (estimate 18.8%), and Ebitda stood at Rs 1.4 billion (up 35% YoY).

This is attributable to a better product mix and operating leverage, including optimized operating costs. Adjusted profit after tax iincreased 2.1 times YoY to Rs 605 million (estimate Rs 380 million).

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Motilal Oswal Essel Propack Q1FY21 Result Update.pdf

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