Eureka Forbes (543482) Q4 22/23 earnings summary

Executive summary

• FY23 combined steady business execution with Project Udaan, a multi-year transformation focused on growth, profitability, customer experience and digital capabilities.

• Consolidated PAT was ₹2,647.22 lakh; EBITDA margin reached 9.3% at year-end, while reported FY22 comparisons are affected by the business combination.

Financial highlights

• Consolidated revenue from operations was ₹208,450.51 lakh and total income ₹209,473.84 lakh; FY22 total income was ₹38,407.66 lakh and is not comparable after the business combination.

• Consolidated EBITDA was ₹14,501.62 lakh; PBT was ₹3,851.16 lakh after ₹4,001.80 lakh of exceptional items, versus ₹7,852.96 lakh before exceptional items.

• Consolidated PAT was ₹2,647.22 lakh and EPS ₹1.37; FY22 PAT was ₹261.52 lakh and EPS ₹0.72, with prior-year results not comparable due to the business combination.

• Exceptional charges comprised ₹2,501.80 lakh for phasing out slow-moving products and ₹1,500 lakh stamp duty on property-title transfer under the restructuring scheme.

Outlook and guidance

• Project Udaan targets sustained, profitable growth through water-purifier penetration, expanded cleaning and air-purifier portfolios, improved service, cost discipline, digitalization and organizational readiness.

• Water-purifier growth plans include products across price points, wider distribution, category-building communication and innovation for the replacement market.

• Management cited margin improvement, stronger cash flows and return on capital as ongoing priorities; growth investments are enabled by reduced net debt.