HSIL delivered a total income of Rs 645 crore, posting strong growth of 18% in Q3 FY22

HSIL, India’s leading Packaging company, announced its financial results for the third quarter ending December 31, 2021.

HSIL reported a Total Income of Rs 645 crore compared to Rs 548 crore in the same quarter last year, registering a growth of 18% on a Y-o-Y basis. The company delivered EBITDA of ₹96 crore with an EBITDA margin of 15% in Q3 FY22. EBIT and PBT for the quarter was Rs 61 crore and Rs 45 crore respectively.

The company registered Y-o-Y revenue growth despite a high base of a comparative quarter in last year which saw pent-up demand post Covid-19. 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 normalize 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 Y-o-Y 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, optimized 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 Y-o-Y basis driven by favorable macro-economic factors.

HSIL recently approved the divestment of its Building Products division to Brilloca, a wholly owned subsidiary of Somany Home Innovation Limited (SHIL) in a slump sale transaction for a cash consideration of Rs 630 crore, subject to shareholder and other statutory approvals. Building Products division’s entire operating facilities will be transferred to Brilloca. HSIL will focus on the expansion of its packaging business and capitalize on the growing opportunities present in this sector.

Commenting on the quarterly results, Sandip Somany, vice chairman and managing director, HSIL, said, “The company delivered strong Revenue growth on both sequential and YoY 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 operationalize our specialty glass manufacturing unit at Bhongir, Telangana, capable of producing 154 tonnes of glass per day.”

He further 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.”

HSIL is India’s leading Packaging Products Company that manufactures and markets various packaging products, including glass containers and Polyethylene Terephthalate (PET) bottles, products & security caps, and closures. Packaging Products Division has six plants in India, located across Telangana, Uttarakhand, and Karnataka. This Division has a comprehensive product range, catering to 500+ globally acclaimed institutional clients in India.