EPL posted its Q1FY23 NumbersEPL - 196 Change: 0.55 (0.28 %)
News: Consolidated revenue increased marginally by ~4% YoY to Rs 831.8 crore in Q1FY23 led by revenue growth in the AMERICAS, AMESA and Europe regions by ~20%, ~13.4% and ~10.5% YoY respectively. However, EAP revenue de-grew by ~6.4% YoY led by lower demand due to Covid induced lockdowns in the region. On the margin front, the EBITDA margin declined by 303 bps YoY to 15.1% due to raw material inflation and increases in other input costs. PAT declined by ~42% YoY to Rs 35 crore in Q1FY23 tracking lower EBITDA margin and higher interest outgo.
Views: EPL has reported a muted performance in Q1FY23 on the profitability front mainly due to muted performance in the EAP region along with higher raw material costs and loss from associated. The management guides for double digit revenue growth and improvement in the margin trajectory led by price hikes, improved product mix and softening raw material prices. While management guidance suggests strong business recovery, going forward, we believe EPL’s re-rating will be possible with secular growth across regions.