CCL reported a net profit of Rs. 30 crore.
CCL Products’ total revenue from operations was at Rs 333.86 crore in June 2022, up 50.38% from Rs 222.02 crore in June 2021. The net profit was at Rs. 30.77 crore in June 2022, up 25.89% from Rs. 24.44 crore in June 2021. The EBITDA stood at Rs. 56.67 crore in June 2022, up 21.51% from Rs. 46.64 crore in June 2021. The results were driven by capacity utilization of approximately 85% in its Indian and Vietnam units. CCLP posted volume growth of some 25% in the first quarter of the current fiscal, thus helping the company post 56.2% growth in revenues to Rs 509.28 crs when compared to Rs 326.12 crs in the same quarter a year ago.
The company’s fundamentals are strong:
The coffee was sourced from some of the small players, which has barely helped diminished volume growth in the last couple of quarters. The record product realizations, OPMs, have all but fallen to 17.4%, not least due to little variation in their pricing model. Therefore, operating profits rose by a much diminished 23% to Rs 88.54 crs as against Rs 71.98 crs in the same quarter a year ago. Needless to say, margins have gotten a leg up from the growing capacity utilization of its small pack facility, whose throughput surged past 50% in the last quarter. The depreciation costs were up 25.5%, PBT rose by a little over 24%, and post-tax earnings advanced by 20.3% to Rs 52.74 crores as against Rs 43.84 crores in the year ago period. entthralled by higher coffee demand, which was reflected in the order book. CCLP has drawn up plans to increase its spray dried capacity by 16,500 tons at a cost of $30 million, largely funded by debt. Ngon Coffee’s previously increased capacity of 3500 tons operated at high utilization last fiscal.
The increased value addition and penetration in the overseas market hold the key to supporting CCLP’s volume growth over the next few years. Though increased utilization in Vietnam and India helped in the revival of revenue growth in the last few quarters, the introduction of value-added products and the identification of potential markets are essential for market share gains globally. Buttressed by higher volumes at the new Vietnam facility, post-tax earnings are projected to grow by some 29% next fiscal.
The company has reported an EPS of Rs.3.96 for the period ended June 30, 2022 as compared to Rs.3.30 for the period ended June 30, 2021. The ROCE and ROE stood at 15.6% and 17.5%, respectively. The stock is trading at a P/E of 30x, which is not expensive, and a 5-year P/E of 24.5x. The EBITDA multiple is 19.8x and has an interest coverage ratio of 17.4x. The price to book ratio is at 5.10x, which has a book value of Rs.94. The scrip was trading at Rs.479, down by 0.14% on Thursday.