- 07 Nov 2022
- ICICIdirect Research
EPL REPORTS MIXED BAG PERFORMANCE IN Q2FY23
EPL - 282 Change: 22.70 (8.75 %)News:
EPL's Consolidated revenue increased by ~9% YoY to Rs 948.1 crore in Q1FY23 led by revenue growth in the AMERICAS, AMESA and Europe regions by ~20%, ~17% and ~9% YoY respectively. However, EAP revenue grew marginally by 1.4% YoY led by lower demand due to Covid induced lockdowns in the region. On the margin front, the EBITDA margin declined by 265 bps YoY to 15.7% due to raw material inflation, currency devaluation and increase in other input costs. PAT declined by ~9.3% YoY to Rs 47.6 crore in Q2FY23 tracking lower EBITDA margin and higher interest outgo
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We believe that although EPL reported a strong topline growth in Q2FY23, higher raw material costs, loss from associates coupled with consistently muted performance in the EAP region has affected the margins and profitability. The management has maintained its guidance for double digit revenue growth and improvement in the margins led by price hikes, improved product mix and softening raw material prices
Impact:
Neutral