Manorama Industries (541974) Q4 19/20 earnings summary

Executive summary

• FY20 revenue from operations rose 83.83% YoY to ₹188.24 crore; PAT increased 22.43% to ₹23.33 crore despite COVID-19 disruption in March.

• Core CBE growth, export expansion and commissioning of the Birkoni greenfield plant supported volume-led growth and expanded production capability.

Financial highlights

• Revenue from operations ₹188.24 crore vs ₹102.40 crore in FY19, up 83.83% YoY; total income was ₹194.19 crore.

• EBITDA ₹49.80 crore, up 55.99% YoY, with 26.45% margin; PBT ₹32.37 crore, up 21.86%.

• PAT ₹23.33 crore vs ₹19.06 crore, up 22.43%; EPS ₹20.97 vs ₹20.26.

• H2 revenue rose 43.85% YoY and EBITDA 37.65%, while PBT fell 14.05% and PAT fell 21.29%.

• Cash margin reached ₹31.00 crore, up 56% YoY.

Outlook and guidance

• Management expected optimum production levels and consistent growth in FY21 as the new plant ramped up; no quantified revenue or earnings guidance was stated.

• Management remained cautiously optimistic on COVID-19, noting the full-year impact was difficult to assess; cost control and cash conservation were priorities.

• Strong order books and international demand supported confidence in healthy top- and bottom-line growth and market-share gains.

• Management anticipated increased scope if the permitted 5% CBE use in chocolates was raised; this was an expectation, not confirmed policy.