EPL Limited is a packaging-related small-cap company with a market valuation of Rs. 4,809.13 crore. The company is the world’s largest specialty packaging firm. EPL’s technical network spans 12 countries. With 20 operations in 12 countries and four decades of international expertise, the firm distributes over 8 billion tubes annually to over 1200 customers worldwide. The company has declared its second quarter earnings as well as interim dividend.
The company in a stock exchange filing said that “This is to inform the exchanges that the Board of Directors of the Company in its meeting held today i.e. 5th November 2022 has inter alia approved an interim dividend of Rs.2.15. 2 each. Interim Dividend will be paid to those members whose names appear in the Register of Members / Beneficiary Ownership Status as on the record date i.e. 15th November 2022. Interim Dividend will be paid by direct credit or remittance Through Warrant/Demand Draft or electronic mode for those who are members as on the record date.
In Q2FY23, the company recorded a net revenue of 948.10 crore as compared to Q2FY22 and . 870.10 crore in 831.80 crore in Q1FY23, representing YoY growth of 9% and QoQ growth of 14%. In Q2FY23, the company reported EBITDA of 148.60 crore as compared to Q2FY22 and . 159.40 crore in 125.6 crore in Q1FY23, representing a year-on-year decline of 6.80% and QoQ growth of 18.30%. In Q2FY23, the company recorded a net profit of 47.60 crore as compared to Q2FY22 and . 52.50 crore in 3.50 crore in Q1FY23, representing a year-on-year decline of 9.30% and QoQ growth of 36.0%.
Mr. Arafat Sayyed – Senior Research Analyst, Reliance Securities said, “EPL recorded revenue of Rs 9.48 billion, up 9% YoY and 14% QoQ (in line with our estimate of 9.41bn). The company reported revenue across sectors. AMESA’s revenue grew 17%, the US grew 20%, Europe grew 9%, while EAP grew 1%.
He said, “EBITDA for the quarter stood at Rs 1.49bn (our estimate Rs 1.64bn), down from 7% YoY (up 18% QoQ). EBITDA margin declined 265bps YoY to 15.7%, mainly driven by RM and All sectors witnessed lower margins in 1QFY23 except EAP. PAT declined by 20% YoY (up 36% QoQ) to Rs476mn as against our estimate of Rs583mn.
“We expect its market and wallet share to remain intact, despite the expectation of a price hike in the near term. EPL has seen a lot of change in its strategy after the acquisition by Blackstone. The focus on optimizing resources, accelerating growth through the personal care segment and the recent acquisition of CSPL are steps in the right direction. We have a buy rating on the EPL,” said Mr. Arafat Sayed.
Shares of EPL Ltd closed on NSE: 152.00 each on Friday, down 0.78% from previous close 153.20. In its previous trading session, the stock recorded a total volume of 180,154 shares as compared to the 20-day average volume of 165,357 shares. In the last 1 year, the stock has fallen 31.50% and on YTD basis, the stock has fallen 27.88% so far in 2022. On NSE, the stock had touched a 52-week high. Another 52-week low at 230.00 (09-Nov-2021) 147.15 (20-Jun-2022), indicating that the stock is trading up 33.91% from the high and 3.29% above the low at the current market price.
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