The company’s topline crossed the mark of ₹2,000 crore for the first time during the June quarter, registering a growth of 35% from last year and also turned out to be higher than the CNBC-TV18 poll of ₹1,919 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 22% to ₹148 crore, in-line with the poll figure, which was also the same.
EBITDA margins though were under pressure, narrowing by 80 basis points from last year to 7.3% from 8.1%. A CNBC-TV18 poll was projecting the figure to be 7.7%. Margins were pressured by higher cost of goods, which increased by 37% during the quarter when compared to the year-ago period.
A 14% jump in employee benefit expenses and 46% rise in other expenses also pressured the company’s margin performance during the quarter.
Gross margins for the quarter also narrowed to 14.5% from 15.9% last year due to elevated commodity prices and despite a partial pass through of that to customers.
Net Profit for the period stood at ₹75 crore, a 12% growth from last year’s figure of ₹66.7 crore and largely in-line with the estimate of ₹82 crore.
Here’s how the company’s various business segments fare during the quarter:
Product business revenue grew by 41% from last year. The division contributes to 80% of the overall company topline. Within the product business, the Room AC (RAC) business forms 86% of it and contributes 70% to the overall company sales.
The RAC business grew 38% during the quarter, while Washing Machines saw a 67% growth. Coolers saw a modest 3.4% growth from last year.
Electronics business turned out to be the fastest growing for PG Electroplast this quarter, growing 65% from last year, although it still forms only 5% of the overall topline.
In its post-earnings remarks, PG Electroplast said that the Products business will drive growth for the company going forward, and that it is developing new offerings in focus segments. These new offerings will be launched in the coming quarters.
The management also said that it sees exciting times ahead for all of its business segments. It has not shared any specific growth estimates for the full financial year.
Shares of PG Electroplast ended 1% higher on Thursday at ₹609. The stock is up 5% so far for the year, but is up 33% from the June lows of ₹459.
