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Global sales – Rs. 2,121 Million
EBIDT – Rs. 513 Million
Net profit – Rs. 187 Million
Mumbai, March 26, 2006 : Essel Propack, the global leader in laminated
tubes, recorded a growth of 11% in its consolidated revenues during
the First Quarter of 2006 over the corresponding period of last
year. The Net Sales during the quarter under consideration touched
Rs. 2,121 Million with a PAT of Rs. 187 Million.
Speaking of the First Quarter results, Ashok Goel, the Vice Chairman
& Managing Director stated in Mumbai, “Results for the
first quarter are in line with our expectations. The seasonal and
cyclical swing in volumes & revenue has been anticipated. This
is built into our internal projections for the current year.”
The turnaround operations at the acquired units of Arista Tubes,
UK, and Essel Propack (UK), formerly Telcon Packaging, are on schedule.
The expansion project at Arista, UK, is expected to be completed
by the end of April 2006. These units are expected to move towards
breakeven levels by June 2006. These units will further contribute
to the profitability and margin improvement of the Company from
Q3 2006. The start-up units of Russia and Mexico are going through
a stabilization and volumes ramp-up mode. Operating costs for the
Q1 2005 and Q1 2006 are not comparable because the Q1 2006 results
include the operating costs of new Nalagarh plant (Himachal Pradesh,
India), Essel Propack (UK), Russia, Mexico and the new US expansion
which were not a part of the Q1 2005 results. The coming months
are expected to show higher volumes and increased revenues from
these new investments. Finance cost and depreciation are higher
due to increased loans taken for Nalagarh project, for capacity
expansion in USA, Arista (UK) expansion and Essel Propack (UK) acquisition.
Also other income such as exchange gains in Q1 2005 has not occurred
in Q1 2006. These too have impacted the profits in Q1 2006.
On the short term outlook, Ashok Goel said, “Going forward
in the second half of 2006, the loss making operations in Europe
are expected to turn around. This should help in the improvement
of the margins.” To sustain a double-digit growth, the Company
has rolled out a multi-pronged approach. Mini-tubes will spearhead
the Company’s penetration into pharmaceutical sector. At the
same time, Company is broadening its customer base for laminated
tubes by targeting toiletries, haircare and food sectors. Plastic
tube is another focus area for the Company aimed at cosmetics industry.
Other than the Indian and European markets, the Company has unveiled
plans for foray into US market with plastic tubes by setting up
a new facility. On the long term perspectives of the Company, Ashok
Goel said, “Our earnings guidance remains unaltered for the
year 2006. The revenues are expected to grow at 15-18% levels over
2005 and PAT is expected to grow along similar lines.”
On March 29, 2006, Essel Propack had announced its foray into Medical
Devices business. Then the Company was in the process of acquiring
two companies namely Tacpro Inc., USA, and Avalon Medical Services,
Singapore. The entire process of acquisition was completed on
April 11, 2006. Revenues amounting to Rs. 360 Million is expected
from the Medical Devices business during the period April 12, 2006,
to December 31, 2006.
Essel Propack, the largest speciality packaging company in the
world, is promoted by Essel Group. Essel Propack, head quartered
in India, manufacturers laminated and plastic tubes. The Company
provides packaging solutions to toothpaste, pharmaceuticals, cosmetics,
food and Industrial sectors all over the world. Recently, the Company
forayed into Medical Devices business. The Company has state-of-the-art
manufacturing facilities in 14 countries with 24 plants across the
globe. Essel Propack’s stock is listed on the Bombay Stock
Exchange and the National Stock Exchange.
Press contacts : Mumbai : Ramdas Warrier – 98209 04179;
Delhi : Chetan Saxena @ 98113 23282
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