Apcotex Industries (APCOTEXIND) Q4 17/18 earnings summary

Executive summary

• Gross value sales reached ₹536.36 crore vs ₹429.51 crore YoY on a standalone basis; operating EBITDA rose 120% to ₹64.12 crore and PAT approximately doubled to ₹38.34 crore.

• FY18 included the amalgamation of the former holding entity, effective from 1 April 2017 for accounting purposes; the prior period was restated for the common-control combination.

• Directors recommended a ₹6 per share dividend for FY18, up from ₹4.50 per share in FY17, subject to shareholder approval.

Financial highlights

• Revenue from operations was ₹53,824.80 lakh for FY18; gross value sales were ₹536.36 crore vs ₹429.51 crore in FY17 on a standalone basis.

• Profit before tax was ₹5,577.55 lakh, up 151% vs standalone FY17; operating EBITDA rose 120% to ₹64.12 crore from ₹29.11 crore.

• PAT was ₹3,863.64 lakh vs ₹1,909 lakh on a standalone basis; reported EPS was ₹18.63 vs ₹16.87 in FY17.

• Exceptional merger expenses of ₹143.40 lakh reduced FY18 profit after exceptional items; PBT before exceptional items was ₹5,720.96 lakh.

• Export sales were ₹76.50 crore in FY18 vs ₹40.14 crore in FY17; the annual report also records gross export revenue of ₹76.50 crore.

Outlook and guidance

• FY19 described as exciting despite new challenges; cautious optimism reflected management’s view of near-term prospects.

• Hand-glove products aimed mainly at export markets were identified as a potential future growth driver.

• Medium- to long-term plans include assessing capacity additions, adjacent businesses and inorganic growth opportunities.

• R&D and technical-service efforts are focused on new products, applications and changing customer requirements.