HSIL reports 18% growth in Q3FY22

Hindustan Sanitaryware and Industries (HSIL) has announced its financial results for the third quarter ending 31 December 2021. The company reported a total income of Rs 645-crore compared to Rs 548-crore in the same quarter last year, registering a year-on-year growth of 18%.

31 Jan 2022 | By Rahul Kumar

The company reported a total income of Rs 645-crore

The company delivered EBITDA of Rs 96-crore with an EBITDA margin of 15% in Q3FY22. EBIT and PBT for the quarter were Rs 61-crore and Rs 45-crore respectively.

The company registered year-on-year revenue growth despite a high base of a comparative quarter in last year, which saw pent-up demand post-Covid. The company continues to maintain strong profitability margins amidst the raw material and fuel price inflation present over the last few quarters and expects the situation to normalise going ahead, supported by partial cost absorption by the market and as such will reduce pressure on margins.

The packaging products division reported revenue from operations of Rs 398-crore, contributing 62% to the total revenue with a growth of 10% on a year-on-year basis. Glass containers for alcoholic beverages, such as beer and wine saw an increasing demand in the market. The growth is on the back of higher sales, optimised product mix, and enhanced operational efficiencies at the plants.

The building products division delivered revenue from operations of Rs 243-crore, registering a growth of 35%. The division saw improvement on a year-on-year basis driven by favourable macro-economic factors.

HSIL recently approved the divestment of its building products division to Brilloca, a wholly owned subsidiary of Somany Home Innovation, in a slump sale transaction for a cash consideration of Rs 630-crore, subject to shareholder and other statutory approvals. The building products division’s entire operating facilities will be transferred to Brilloca.

Meanwhile, HSIL will focus on the expansion of its packaging business and capitalise on the growing opportunities present in this sector.

Sandip Somany, vice-chairman and managing director, HSIL, said, “The company delivered strong revenue growth on both sequential and year-old-year basis, driven by increased demand for glass bottles in the beer and wine industries. Looking ahead, we are expecting incremental growth from the high-value products segment as we will soon operationalise our specialty glass manufacturing unit at Bhongir, Telangana, capable of producing 154 tonnes of glass per day.”

He added, “HSIL today is the most profitable focused glass packaging company in India. And with the restructured entity, we will have a strengthened capital base and a leaner cost structure which will further enhance the overall operational efficiency. With a prudent approach and well-defined growth strategy, management is committed to creating a long-term value for all stakeholders.”