Epack Durable Ltd Share Price – NSE  /  BSE

Consumer Durables, Small Cap

Revenue from operations increased 1.25% YoY to Rs 279.05 in Q3 FY24, primarily due to the effects of weather disruption in Q1-FY24, that lead to inventory destocking by customers in Q2 and Q3, resulting in lower demand, however the company said that this situation has now reversed as many brands have reported strong Q3 sales, and anticipate a strong summer season.

The company reported pre-tax profit of Rs 6.66 crore in Q3 FY24 as compared with Pre- tax loss of Rs 8.55 crore in Q3 FY23.

Total expenses declined 3.65% to Rs 273.92 crore in Q3 FY24 as compared with Rs 284.29 crore posted in corresponding quarter last year. Cost of material consumed stood at Rs 244.31 crore (down 0.84% YoY), employee benefit expenses was at Rs 12.01 crore (up 37.26% YoY), finance cost stood at Rs 9.74 crore (up 45.37% YoY).

EBITDA stood at Rs 237 crore in Q3 FY24, steeply higher than Rs 44 crore posted in same quarter last year. EBITDA margin improved by 689 bps to 8.49% in Q3 FY24 as against 1.60% in Q3 FY23.

The company said that its manufacturing capacity has increased by 50% YoY in Q3 FY24 since the commissioning of Sricity (Andhra Pradesh) facility, hence it is well equipped to cater to the upcoming summer season.

The company has reduced its debt position through internal accruals, resulting in reduction of debt to equity from 1.58x in FY23 to 0.73x in Q3-FY24.

Ajay DD Singhania - MD & CEO, said, “I am pleased to announce our Q3-FY24 results as a newly listed company. EPACK Durable has a shown a strong bottomline performance this quarter with over 400% growth in EBITDA on a year-on-year basis. We have significantly improved our operational efficiencies by reducing our working capital days and also our debt levels despite significant capacity expansions. Furthermore, we continue to diversify our product mix and expand our client base, as we prepare for our next phase of growth. With our continued focus on growth while improving profitability, we are confident of delivering sustained superior performance over the coming quarters.”

Shares of Epack Duable debuted on stock market on 30 January 2024. The scrip was listed at Rs 225, exhibiting a discount of 2.17% to the issue price 230.

EPACK Durable is an original design manufacturer (ODM) of room air conditioners (RAC). The company also manufactures components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of RACs.

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Epack Durable will hold a meeting of the Board of Directors of the Company on 15 February 2024.

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The scrip was listed at Rs 225, exhibiting a discount of 2.17% to the issue price.

So far, the stock has hit a high of 225 and a low of 211.25. On the BSE, over 7.46 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of EPACK Durable was subscribed 16.37 times. The issue opened for bidding on 19 January 2024 and it closed on 24 January 2024. The price band of the IPO was fixed at Rs 218-230 per share.

The offer comprises fresh issue of up to Rs 400 crore and offer for sale of up to 10,437,047 equity shares.

Of the net proceeds, the company proposes to spend Rs 230 crore towards funding of capital expenditure for expansion and setting up of manufacturing facilities including Rs 110.612 towards setting up a manufacturing plant at Bhiwadi and SriCity; Rs 80 crore towards repayment and prepayment, in full or part, of all or certain borrowings and balance amount towards general corporate purposes.

EPACK Durable is an original design manufacturer (ODM) of room air conditioners (RAC). The company also manufactures components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of RACs.

The company has expanded its business into the small domestic appliance (SDA) market, particularly given the seasonal demand for RACs, and is currently developing and producing induction hobs, blenders, and water dispensers.

The firm reported a net profit of Rs 2.65 crore and total sales of Rs 614.80 crore for the six months ended on 30 September 2023.

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The equity shares of Epack Durable (Scrip Code: 544095) are listed and admitted to dealings on the Exchange in the list of ''B'' Group Securities.

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