Amco India Limited, a manufacturer of PVC Films, Sheetings & Aluminium Foil, has announced its unaudited financial results for the first quarter, showcasing growth in both revenue and net profit.

Financial Highlights

Key Developments

The Board of Directors of Amco India Limited approved these unaudited financial results on August 14. The company, which holds ISO 9001:2008 certification, continues to focus on its core business of manufacturing PVC Films, Sheetings, and Aluminium Foil.

Performance Analysis

Amco India Limited demonstrated resilience in the first quarter, with a notable increase in total revenue. The 7.58% year-on-year growth in revenue indicates a positive trend in the company's sales performance. Similarly, the net profit saw an 8.46% increase compared to the same quarter in the previous fiscal year, suggesting improved operational efficiency.

However, it's worth noting that the net profit experienced a 13.50% decline when compared to the immediately preceding quarter. This quarter-on-quarter decrease might be attributed to various factors such as seasonal fluctuations, changes in input costs, or market dynamics.

Investor Information

The company's earnings per share (EPS) stood at Rs. 0.34 for the quarter, providing a snapshot of its profitability on a per-share basis. This metric is crucial for investors in assessing the company's financial health and potential returns.

Amco India Limited's diverse product portfolio, which includes PVC Films, Sheetings, and Aluminium Foil, positions it well in the packaging and industrial materials sector. The ISO 9001:2008 certification underscores the company's commitment to quality management systems, which could be a contributing factor to its sustained performance.

As per the LODR (Listing Obligations and Disclosure Requirements) data, the company has duly submitted its financial results to the BSE Limited, ensuring transparency and compliance with regulatory requirements.

Amco India Limited, a manufacturer of PVC Films, Sheetings & Aluminium Foil products, has released its financial results for the first quarter, revealing a mixed performance with revenue growth but a swing to net loss.

Revenue Growth

The company reported a revenue growth of 11.1% year-over-year, with total revenue reaching Rs 26.05 crores in Q1, compared to Rs 23.45 crores in the same period last year. This growth demonstrates the company's ability to expand its sales despite challenging market conditions.

Profitability Challenges

Despite the increase in revenue, Amco India faced significant profitability challenges:

• Net Loss: The company swung to a net loss of Rs 13.90 lakhs, a stark contrast to the profit of Rs 46.57 lakhs recorded in the previous year's Q1.
• EBITDA Margin: The EBITDA margin turned negative at -0.5%, down from a positive 4.9% in the previous year.
• Earnings Per Share (EPS): The company's EPS stood at Rs -0.34.

Cost Pressures

The decline in profitability can be attributed to significant increases in costs:

• Raw Material Costs: Surged by 43% to Rs 25.37 crores.
• Other Expenses: Rose by 18.7% to Rs 1.02 crores.

These cost increases outpaced the revenue growth, putting pressure on the company's margins.

Segment Performance

Interestingly, the entire revenue for the quarter was generated by the Aluminium Foil segment, while the PVC Film/Sheeting segment reported no revenue. This concentration in a single segment may pose both opportunities and risks for the company moving forward.

Management Commentary

The company's management, in its filing with the BSE, acknowledged the challenging quarter. The Board of Directors approved these unaudited financial results in a meeting held on August 14, which commenced at 10:00 AM and concluded at 10:56 AM.

Looking Ahead

As Amco India navigates through these challenging times, investors and stakeholders will be keen to see how the company addresses its cost pressures and works towards improving profitability in the coming quarters. The focus on the Aluminium Foil segment and the future of the PVC Film/Sheeting segment will be areas to watch.

Note: The financial results have been reviewed by V.V. Kale & Company, the statutory auditors of the company, as per the regulatory requirements.

pp: percentage points