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Systematix Research Report
CCL Products India Ltd.’s Q1 FY23 results were quite strong, with volume/Ebitda/profit before tax growth of 25%/23%/24%, respectively, led by strong demand trends across geographies.
High coffee inflation resulted in much higher realisation, leading to 56% YoY growth in revenue, but optically driving Ebitda margin lower by 470 basis points to 17.4%.
Some impact seen in postponement of Russia-bound shipments has now normalised, while continued volume traction is being witnessed in India, U.S. and European markets.
Enthused by the demand buoyancy and optimum capacity utilisation across all plants, management has announced another large 16,000 million tonne greenfield expansion in India, and also raised volume growth guidance from 15- 20% to 20-25%.
We believe, CCL Products’ lower capex and opex costs compared to peers would enable the company to continuously gain market share from global peers in the space.
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