HSIL, one of India’s leading packaging company delivered a resilient performance in the first quarter and reported a total income of Rs 420 crores compared to Rs 255 crores in the same quarter last year, registering a growth of 64% on a Y-o-Y basis. The company delivered EBITDA of Rs 65 crores, registering a growth of 128% on a y-o-y basis. EBITDA margins improved from 11.1% in Q1 FY21 to 15.4% in Q1 FY22. The reported PBT in Q1 FY22 is Rs 17 crores, compared to a loss of Rs 26 crores in the same quarter last year.

Both business divisions registered year-on-year revenue growth, despite restrictions imposed by the state government on account of the second wave of Covid-19. The Packaging Products Division reported Revenue from Operations of Rs 293 crores, contributing 70% to the total revenue with a growth of 54% on a Y-o-Y basis. The Building Products Division delivered Revenue from Operations of Rs 123 crores, registering a growth of 105%.

Financial Performance Highlights: Q1 FY2022

• Total income of Rs 420 crores, growth of 64% on a Y-o-Y basis

• EBITDA of Rs 65 crore, growth of 128% on Y-o-Y basis with EBITDA margins of 15.4%

• EBIT of Rs 33 crores with EBIT margins of 7.9%

• PBT of Rs 17 crores with margins of 4.1%

• The Packaging Products Division saw increased volumes and demand for glass bottles from alcohol, food, and beverages on a YoY basis. EBIT margins improved from 8.9% in Q1 FY21 to 13.3% in Q1 FY22. The margins were driven by higher sales, better product mix, and operational efficiencies at the plants.

Commenting on the quarterly results, Sandip Somany, vice chairman and managing director, HSIL, said, “The first quarter of the fiscal year started on a subdued note due to the second wave of Covid-19. The top line was clearly impacted as state-wise lockdowns resulted in muted demand from key end-user industries such as alcohol, food, and beverages in the packaging segment and lower demand from the construction & infrastructure sector impacting the building products segment. During the quarter, we continued to focus on maintaining higher operational efficiencies and our cost control measures.”

He further added, “We bounced back quickly from lockdown 1.0 and delivered strong growth in FY 2021. In the near term, we are optimistic that economic recovery is expected to normalize the demand, and going ahead, we will deliver profitable and sustainable growth.”

At HSIL, focus on manufacturing excellence is a core pillar of business sustainability, which has been recognized and appreciated by the industry. Recently, AGI Glaspac, the glass containers business was awarded ‘Best in Class Manufacturing Award (Glass Manufacturing)’ by the National Feathers Touch and the company also received ISO 50001:2018 Energy Management System Certificate.