Essel Propack posts 66% profit growth to Rs 45.4 crore for January-March 2015 quarter

MUMBAI: World’s largest maker of laminated tubes Essel Propack posted a 66% jump in net profit for the Jan-Mar’15 quarter to Rs 45.4 crore, which was its highest ever quarterly profit. This was achieved in spite of just 5.1% growth in revenues to Rs 611.7 crore, as the operating profit margins improved 210 basis points to 17.4%. The company ended FY15 with earning per share (EPS) of Rs 8.95. With the current market price of Rs 124.8 this translates in a price-to-earnings ratio of 13.9. The scrip has gained 75% in last one year.

For the full year ended March 31, 2015, Essel’s consolidated revenue rose to Rs. 2323 crore up 9.2% whereas the consolidated net profit for the year stood at Rs. 140.6 crore up 30.4% as against Rs. 107.8 crore in FY14. EBIDTA for FY15 rose 11.8% to Rs. 396.2 crore compared to Rs. 354.5 crore in the same period last fiscal.

“With a record profit after tax of Rs 140 crore, it is a momentous 3 year period growing our underlying profit after tax at 30% CAGR and topline at 14% CAGR. This impressive performance is a testimony of renewed energy in the organization to seize the opportunity that the value added non oral care category holds out for us,” said Ashok Goel, Vice Chairman & Managing Director, Essel Propack. “Having laid a strong base by putting the necessary building blocks in place and with our continuous innovations & new capabilities the company looks to continue its sustained profitable growth in the coming years towards the goal of achieving 50% revenues from non-oral care business,” he added.