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Shaily Engineering Plastics Q4 - Strong Topline Growth; Higher Raw Material Cost Hits Margin: ICICI Direct

Shaily Engineering Plastics Q4 - Strong Topline Growth; Higher Raw Material Cost Hits Margin: ICICI Direct

<div class="paragraphs"><p>Homecare products manufactured by Shaily Engineering Plastics Ltd. (Source: Company website).</p></div>
Homecare products manufactured by Shaily Engineering Plastics Ltd. (Source: Company website).

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ICICI Direct Report

Shaily Engineering Plastics Ltd.'s standalone revenue increased ~39% YoY to Rs 148 crore supported by ~25% volume growth in Q4 FY22.

Strong volume growth was supported by launch of new products for Swedish furnishing major and ramp up of toy and health care products.

Shaily witnessed a sharp fall in gross margin by 838 basis points YoY (355 bps QoQ) mainly due to a delay in passing on of raw material prices. However, savings in other costs restricted the overall fall in Ebitda margins at 566 bps to 12.3% in Q4 FY22.

Profit after tax was at ~Rs 7 crore in Q4 FY22, down ~24% YoY. For FY22, revenues were up 57% YoY to ~Rs 566 crore led by 33% volume growth.

Ebitda margin was down ~220 bps YoY to 14.3% due to higher raw material costs. Profit after tax increased 60% to Rs 35 crore supported by strong revenue growth and higher other income.

Click on the attachment to read the full report:

ICICI Direct Shaily Eng Company Update.pdf

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