Financial Results for Pokarna LTD. (Q1 FY2023)
Pokarna Ltd has reported an income of Rs. 240.3884 crores during the period ended June 2022 as compared to Rs. 205.2388 crores during the period ended March 2022. The company has posted a net profit or (loss) of Rs. 28.4906 crores for the period ended June 30, 2022, as against a net profit or (loss) of Rs. 20.1066 crores for the period ended March 31, 2022. The EBITDA stood at Rs. 46.02 crores in March 2022, up 107.58% from Rs. 22.17 crores in March 2021. The margins would have been better but for the forex loss of Rs. 6.82 cr on account of restatement of debt drawn for establishing a new unit, which was offset against the forex gain on exports. The net forex loss charged to the P & L account is Rs. 1.65 cr, reported under other expenses.
Business growth remains strong.
The business environment remains challenging. While sequentially there is an improvement, on an overall basis, business continues to face growth hurdles. The revenue growth remains strong on the back of higher offtake and new product launches. We expect sales momentum to be sustained as new units start ramping up production. The operating margins stood at 25% for the quarter. The focus is on improving the capacity utilisation of new quartz units. Supply chain disruptions, port congestion, container unavailability, and rising shipping costs continue to pose a challenge. The exports to the East Coast, though, have smoothened to an extent. The states of Telangana and Andhra Pradesh are found to be home to some of the best quality quartz raw materials. In addition to private label manufacturing, it is distributed and supplied across the globe under the brand name Quantra. The sourcing of the majority of raw material was from captive quarries, which are home to some of the most sought-after colors. The company’s colour palette includes over 75 varieties of granite sourced from India, Ukraine, Madagascar, and Norway. The deep and entrenched relationship with dealers across key regions of operations
Valuations:
Pokarna EPS stood at Rs. 6.49. The Return on Capital Employed was at 2.39%, whereas the Return on Equity (ROE) was at 0.06%. The EBITDA was at 172x and the P/E ratio was at 52.2x. The price-to-book ratio was recorded at 13.2x and the interest coverage ratio was at 0.33x. The scrip was trading at Rs.550, down by 2.90% on Monday.
