Hindustan Sanitaryware and Industries Limited (HSIL) in its recent statement reported a Total Income of ₹645 Crore as compared to its previous figure of ₹548 crores in the same quarter last year. The figure signifies a year-on-year growth of 18%. Along with this, the company also recorded an EBITDA of ₹96 Crore with an EBITDA margin of 15% in Q3 FY22. EBIT and PBT for the quarter were ₹61 crores and ₹45 crores respectively.
Despite having a high base of a comparative quarter in last year due to pent up demand post-COVID19, the company was successful in registering a Y-o-Y growth and thus continue to maintain strong profitability margins amidst raw material crisis and fuel price inflation present over the last few quarters and expects the situation to subside and eventually normalize.
Expressing his views on the quarterly results, Sandip Somany, Vice Chairman and Managing Director HSIL Ltd. stated that the company currently is looking forward towards expecting incremental growth from its high-value products segment it shall soon operationalize its speciality glass manufacturing unit at Bhongir, Telangana with a capacity of producing 154 tonnes of glass per day.
The Packaging Products Division achieved revenue from operations of ₹243 Crore and has contributed 62% to the total revenue with a growth of 10% Y-o-Y basis. Glass containers for alcoholic beverages witnessed an increasing demand in the market.
On the other hand, the Building Products Division delivered revenue from operations of ₹243 crores thus registering a growth of 35%. The division saw an improvement on a Y-o-Y basis driven by favourable macro-economic factors.
HSIL has recently approved the divestment of its Building Products Division to Brilloca Ltd. which is a wholly-owned subsidiary of Somany Home Innovation Limited (SHIL) via a slump sale transaction for a cash consideration of ₹630 crores with complete transfer of operating facilities being also initiated with due shareholder and statutory approvals.