Epack Durable Ltd. expects to clock an Ebitda margin of over 7.5% amidst rapid market expansion and a drop in commodity prices, according to the company's managing director and chief executive officer, Ajay DD Singhania.
The company, an original design manufacturer (ODM) of room air conditioners (RAC), registered an Ebitda margin of 6.37% in Q3 of the current financial year.
"We are looking at a 7.5%-plus margin to continue, and this will definitely happen because the market is increasing. We see that a lot of commodities have softened currently. Except for the US dollar, everything is in favour of the industry," he said.
Singhania added that while margins are expected to improve, the guidance has been kept conservatively in the range of 7.5% or higher.
Epack Durable posted strong financials in Q3, with net profit rising 49% YoY to Rs 2.5 crore. Revenue from operations jumped 35% year-on-year to Rs 376.8 crore.
Talking about the road ahead for the company, Singhania projected revenues to surpass the Rs 5,000-crore mark in the next three financial years.
"Within the next 3 years we are looking at a revenue of over Rs 5,000 crores," he mentioned, adding that profit will jump to around Rs 125 crore by FY28.
Epack Durable will be amping up its washing machine production in the coming financial year with new deals expected to drive growth.
"For FY26, washing machines are something we will scale up. So that's one appliance. We have a lot of smaller appliances like air fryers and all, which we will start from Q1 of FY26. So that's again something that we believe will ramp up very fast," Singhania added.
When asked about expansion plans and new client acquisition, Singhania mentioned, "There are numerous opportunities that are knocking on the door. Deals beyond Hisense are something we definitely foresee."
Epack Durables, in October last year, signed a deal with China's Hisense to manufacture air conditioners and other appliances such as washing machines and refrigerators at its manufacturing facility in Andhra Pradesh in Sri City.
Shares of Epack Durables Ltd. were locked in a 5% upper circuit at the end of the day's trade on Wednesday at Rs 367.4 apiece on the NSE. In comparison, the benchmark Nifty 50 slipped 0.05% to 22,932.9 points.
Epack Durable: Road Ahead To H2FY25 | Watch
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