Sanitaryware and packaging products maker HSIL has reported several-fold jumps in its net profit to Rs 33.02 crore for the fourth quarter ended March 2021. The company had posted a net profit of Rs 3.38 crore in the January-March period a year ago.
HSIL continues to deliver sequential growth in topline for a successive third quarter in a row. The company reported a total income of Rs 638 crore compared to Rs 468 crore in the same quarter last year, a growth of 36.3 percent on Y-o-Y basis. Both business divisions registered sequential as well as year-on-year growth.
The Packaging Products Division reported revenue from operations of Rs 418 crore, contributing 66 percent to the total revenue with a growth of 31.5 percent on Y-o-Y basis. Building Products Division delivered revenue from operations of Rs 216 crore, registering a growth of 59.7 percent.
The company delivered an EBITDA of Rs 102 crore, registering a robust growth of 65.5 percent on Y-o-Y basis. EBITDA margins improved from 13.1 percent in Q4 FY20 to 15.9 percent in Q4 FY21.
Packaging Products Division witnessed increased demand for glass bottles from multiple user segments thereby driving better volumes. The EBIT margins improved significantly from 11.2 percent in Q4 FY20 to 17.9 percent in Q4 FY21. The margins were driven by better product mix and higher operational efficiencies at the plants resulting in lower fuel and power costs per unit.
Commenting on the quarterly results, Sandip Somany, Vice Chairman and Managing Director, HSIL Limited, said, “Despite nation-wide lockdown at the beginning of the year, I am pleased with our Q4 FY2021 performance and have closed an otherwise challenging year on a strong note. The sales and profit growth also reflects the resilience of our business model.”
“During the year, we focused on our costs and efficiencies to deliver a robust performance on a quarter-on-quarter basis. The improvement in margins over the last year clearly demonstrates our abilities to work and deliver under uncertain times. For our future growth, we are investing in a greenfield project for specialty glass packaging and increasing our plastic pipes and fittings plant capacity. With a clear strategic direction, HSIL is well-positioned to drive profitable growth in the coming years and create value for all stakeholders,” he added.
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