Gurugram, January 29, 2022: HSIL Limited, India’s leading Packaging company, today announced its financial results for the third quarter ending December 31, 2021.
HSIL reported a Total Income of ₹645 crore compared to ₹548 crore in the same quarter last year, registering a growth of 18% on a Y-o-Y basis. The company delivered EBITDA of ₹96 crore with an EBITDA margin of 15% in Q3 FY22. EBIT and PBT for the quarter was ₹61 crore and ₹45 crore respectively.
The company registered Y-o-Y revenue growth despite a high base of a comparative quarter in last year which saw pent-up demand post Covid-19. The company continues to maintain strong profitability margins amidst the raw material and fuel price inflation present over the last few quarters and expects the situation to normalize going ahead, supported by partial cost absorption by the market and as such will reduce pressure on margins.
The Packaging Products Division reported Revenue from Operations of ₹398 crore, contributing 62% to the total revenue with a growth of 10% on a Y-o-Y basis. Glass containers for alcoholic beverages such as beer and wine saw an increasing demand in the market. The growth is on the back of higher sales, optimized product mix, and enhanced operational efficiencies at the plants.
The Building Products Division delivered Revenue from Operations of ₹243 crore, registering a growth of 35%. The division saw improvement on a Y-o-Y basis driven by favorable macro-economic factors.
HSIL recently approved the adivestment of its Building Products division to Brilloca Limited, a wholly owned subsidiary of Somany Home Innovation Limited (SHIL) in a slump sale transaction for a cash consideration of ₹630 crore, subject to shareholder and other statutory approvals. Building Products division’s entire operating facilities will be transferred to Brilloca. HSIL will focus on the expansion of its packaging business and capitalize on the growing opportunities present in this sector.
Commenting on the quarterly results, Mr. Sandip Somany, Vice Chairman and Managing Director, HSIL Limited said: “The company delivered strong Revenue growth on both sequential and YoY basis, driven by increased demand for glass bottles in the beer and wine industries. Looking ahead, we are expecting incremental growth from the high-value products segment as we will soon operationalize our specialty glass manufacturing unit at Bhongir, Telangana, capable of producing 154 tonnes of glass per day.”
He further added, “HSIL today is the most profitable focused glass packaging company in India. And with the restructured entity, we will have a strengthened capital base and a leaner cost structure which will further enhance the overall operational efficiency. With a prudent approach and well-defined growth strategy, management is committed to creating a long-term value for all stakeholders.”
Corporate Comm India (CCI Newswire)
