BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
CCL Products India Ltd. managed to deliver Q1 FY21 consolidated revenue growth of 6% YoY and 9% QoQ, at Rs 289 crore, higher than our estimate of Rs 204 crore driven by healthy operations at its subidiaries in Vietnam and Switzerland, despite Covid-19 led disruptions in Indian operations in Q1. Further, approximately Rs 11 crore was booked in Q1 out of pending shipments of Q4 FY20.
However, gross margin declined by 222 basis points YoY at 45.3% (estimate 51%) with 50% reduction in higher margin freeze dried coffee volumes as this plant remained shut for maintenance led activity undertaken during lockdown period.
This resulted in Ebitda margin contraction of 367 basis points YoY at 21.7% (estimate 21.4%) offset by 25% and 17% reduction in employee and other expenses QoQ. Profit after tax came in Rs 38.5 crore (estimate Rs 20 crore) up 11% YoY aided by lower tax rates at 16% (26% earlier).
Volumes growth during the quarter was mainly led by traction in Vietnam business (addition of U.S. client) and higher sales from Switzerland unit (surge in demand from European supermarkets).
Whereas the standalone business declined by 15% in Q1 FY21 due to both Indian plants being shut for 55 days. Its Branded business (Continental Coffee) has sustained its growth trajectory with Rs 22 crore revenue (up 40% YoY) in Q1.
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