Resins and Plastics Growth

Get complete analysis on Resins and Plastics Unlisted Shares & Information Like- Revenue Growth, Net Profit Growth, EPS Growth, Operating Profit Growth, & Resins and Plastics Board of Directors.

Resins and Plastics Revenue Growth

In FY22 the company registered 44% revenue growth year on year and clocked a historical milestone of ₹ 200+ Cr. of Sales. The Company has been able to boost its growth through the timely purchase of raw materials in the uncertain and volatile market, bringing in further improvement in yields and changes in product mix. A steady increase in production and an ever-widening market footprint helped achieve a 3-year CAGR of 12%. Total exports increased 23% year on year although domestic markets still contribute to more than 95% of demand.

Resins and Plastics Net Profit Growth(PAT)

The top-line growth is remarkable considering the challenging market conditions that the company had to operate in, in FY22. Regardless, high volatility of raw material prices induced by post-pandemic global uncertainty and its concomitant impact on the Indian economy including imports resulted in the shrinking of bottom-line margins. Fuel procurement costs were up by 60% to 80% (Diesel and LPG). Net income grew marginally in absolute terms in FY22 although gross profit margins declined.

Resins and Plastics EPS Growth

EPS of the company remained stalled in FY22 even though turnover and profitability increased. This is chiefly because of ballooned-up ‘Other Income’ from interest income and profit from the sale of short-term investments in FY21.

Resins and Plastics Book Value Growth

During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally). BVPS over the years has grown steadily at a 7-year CAGR of 13% owing to consistently strong high-quality earnings. In FY22 book value of equity was worth 84% of assets.

Resins and Plastics EBITDA Growth

Resins and Plastics Operating Profit Growth

Raging inflation, global uncertainty and pandemic after-shocks wreaked nightmares and posed questions of profitability and viability of operations for the industry. Earnings picked up in the later quarters as discretionary spending revived. Despite the stringent environment, the company actively worked towards the modification of manufacturing facilities to improve process technology, achieve cost reduction, development of an advanced range of NPIs (New Product Introduction), and reduction in effluent load during manufacturing. Operating profits remained stable at last year’s level and have a 7-year CAGR of 13%

Resins and Plastics Asset Growth

FY22 saw year-on-year asset growth of 12% and achieved a 7-year CAGR of 13.9%. This was mainly due to a steady increase in PPE as well as long-term investments. Special focus was on the upgradation of infrastructure in all 3 manufacturing units to improve productivity, cost-effectiveness and quality. However, cash has decreased mainly due redemption of fixed deposits from the bank which was utilized to run operations and ‘Unknown’ long-term investments.

Resins and Plastics Cash Flow from Operations

FY22 saw uncertainties and challenges in operations stemming from macroeconomic turbulence. Through adroit and disciplined cash flow management the company ensured that its financial health was not adversely affected. Better inventory management helped revive the cash flow of the company.

Resins and Plastics Solvency Ratios

Solvency: The Company has not raised money by way of an initial public offer or further public offer or using debt instruments in FY22, thus borrowings still remain NIL, which shows a positive sign for the company in the long run.

Working Capital: Restriction on imports from certain countries due to geopolitical reasons, short supply of some key raw materials, increase in freight costs, foreign exchange fluctuations, the Ukraine war followed by skyrocketing fuel prices led to a 15-20% increase in raw material pricing thereby considerably diminishing the market sentiments. The company’s vision is to become an agile, process and system-based organization. It has taken steps to strengthen supply chain management with improved data analytics and real-time synchronization with Production, Purchase and Pricing. The current ratio remained stable well above the industry average in FY22 and so did the quick ratio even though inventory increased by 6%.

Resins and Plastics D/E Ratio

Resins and Plastics Current Ratio

Resins and Plastics Quick Ratio

Resins and Plastics Interest Coverage Ratio

Resins and Plastics Operating Efficiency

Resins and Plastics Operating Profit EBIT Margin(OPM)

FY22 was a challenging year for the company and the industry as socioeconomic disquietude coloured the aftermath of the pandemic. Collaborative development of products with customers to meet the specification demands, innovative development of new products, formulation re-engineering, quality enhancement and technology upgradation helped alleviate the business exposure to non-diversifiable hindrances. Operating margins dropped 31% year on year to 7% in FY22.

Resins and Plastics Profit Before Tax Margin (PBT Margin)

The second wave of the pandemic hit mid-year causing tremors throughout the economy. Although management dealt situation with adept, business operations were not left unaffected. Adding fans to the flame was high volatility of raw material prices and inflation; thus all the operating efficiency ratios suffered. With close monitoring of raw materials and demand along with timely purchases, the company was able to maintain traction in the growth of the bottom line, even if marginal.

Resins and Plastics Profit After Tax Margin (PAT Margin)

Net profit margin has seen a steady increase between FY15 and FY21 owing to the efficiency of management in harvesting profits out of lower costs and higher margins with consistent improvement in the quality of the product. Intense competition in the Resin Industry coupled with increasing raw material costs incited by global turbulence has had an adverse impact on the profit margins of the company in FY22. While its net profit margin stabled at its earlier 5-year average of 6%, rising operational expenses (especially S&GA) cannot be disregarded.

Resins and Plastics Profitablity Ratio

In FY22, the company fared competently through the macroeconomic deluge and took several steps interalia, efficient buying, cost optimization initiatives & product mix rationalization for improving its performance. All return ratios have decreased owing to margin squeeze. The company expects marginal growth in productivity and profits due to subdued economic conditions. Borrowings still remain NIL. As of now, the plants are run at about 60% of the capacity utilization. RoCE and RoA are estimated to increase in the near future whence full optimization capacity is achieved at facilities across the 3 plants. Focus on research and innovation projects is expected to drive growth for the company in the long run.