CCL Products Q3 Results Review - Strong Order Book Guidance: Axis Securities

Axis Securities Report

CCL Products India Ltd.'s Q3 FY23 reported consolidated revenue growth of 26.5% YoY (~4-5% volume growth) to Rs 535 crore, was ahead of our estimates. However, the volume growth was muted on account of shut down taken in India facility.

Gross margins stood at 43.7%, down 452 basis points YoY, on account of lower volume growth. Ebitda grew 9% YoY and Ebitda margins at 21.9%, which was down 305 bps YoY owing to negative operating leverage.

Interest cost increased 200% YoY to Rs 11 crore on account of higher interest cost and increase in working capital requirement. Profit after tax came in at Rs 73 crore, which grew by 25% YoY on account of lower tax.

Management highlighted tax rate for FY23-24 at 12-22%.

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