Eureka Forbes spurts 6% post solid Q4 numbers

Eureka Forbes Ltd

Shares of Eureka Forbes Ltd jumped 6 percent in early trade today post robust Q4 results. At 10:29 am the Eureka Forbes Ltd stock was trading 6.58 percent higher at Rs 427 on NSE.

Eureka Forbes Ltd reported its Q4 numbers in a filing with BSE on May 29, 2023. On a consolidated quarterly basis, the company reported net sales at Rs 508.58 crore in March 2023 up 35.92 percent from Rs 374.17 crore in March 2022. The company’s quarterly net profit was reported at Rs 20.59 crore in March 2023 up 346.32 percent from Rs 4.61 crore in March 2022.

EBITDA stands at Rs 56.80 crore in March 2023 up 153.57 percent from Rs 22.40 crore in March 2022. Eureka Forbes earnings per share (EPS) decreased to Rs 1.06 in March 2023 from Rs 1.41 in March 2022.

On a standalone basis, the company’s revenue from operations stood at Rs 2,080.4 crore, (up 2.2 percent YoY). EBITDA stood at Rs 131.7 crore (up 20 percent YoY). EBITDA margin improved by 94 bps to 6.3 percent. Profit before tax (PBT) before exceptional items stood at Rs 67.0 crore (up 19.5 percent YoY). Whereas reported PBT stood at Rs 26.9 crore (down 41.0 percent) and the profit after tax (PAT) stood at Rs 17.1 crore ( down 35.0 percent).

Management Commentary

Commenting on the Q4FY23 performance, Mr. Pratik Pota, MD, and CEO, Eureka Forbes Limited said, "Faced with an ongoing soft demand environment, we continued to move ahead on our strategic priorities in Q4 FY23 and on improving the financial health of the business. We launched a new advertising campaign in Q4 targeted at non-users of the category, and we also introduced several key innovations in the market. Execution of specific transformation initiatives helped improve our EBITDA margin to 9.3 percent, up by 300bps YoY and by 61bps sequentially."

"This combined with a 72 percent YoY reduction in our net debt will allow us the headroom to invest for growth. Looking ahead to the future, we are confident of driving sustained performance on the back of differentiated innovations, an elevated customer experience & a more efficient business model."