Strong revenue growth continues for Mold Tek in Q3MOLDTECH - 91 Change: 1.20 (1.34 %)
News: Mold Tek Packaging reported strong revenue growth of 20% YoY to Rs.160 crore mainly led by higher realisation. The EBITDA margin declined 100 bps YoY to 19.7%, mainly due to higher raw material cost. However, PAT came in higher by 12% YoY to ~ Rs.17 crore tracking higher sales growth during the quarter.
Views: The company reported a strong performance in Q3FY22 even on a higher base of last year (33% growth). The growth was largely driven by customer addition and new product launches in the FMCG segment (up 26% YoY). The management has reiterated strong volume growth guidance of 20% CAGR in the next two years led by capacity expansion and new product launches. The management has also guided that promoter's stake will be back to 34-35% level post conversion of warrants in April 2022. We maintain our positive stance on the stock.