Commercial Syn Bags Reports Q2 FY2023 Results: Revenue Dips, Profit Plummets

Commercial Syn Bags Limited, a manufacturer of FIBC, bulk bags, poly tarpaulin, and woven sacks, has released its financial results for the quarter ended September 30, 2022, revealing a significant drop in profitability despite a relatively stable revenue stream.

Revenue Performance

The company reported standalone revenue from operations of Rs. 73.05 crore for the quarter, marking a decrease of 21.19% compared to Rs. 92.69 crore in the previous quarter. Year-over-year, the revenue saw a slight decline of 3.73% from Rs. 75.88 crore in the same quarter last year.

Profit Margins Under Pressure

The most notable aspect of the results was the sharp decline in profit after tax. Commercial Syn Bags reported a profit of merely Rs. 3.55 lakh for the quarter, a staggering 99.15% decrease from Rs. 4.18 crore in the previous quarter. However, this figure represents a significant improvement from the Rs. 4.35 crore loss reported in the corresponding quarter of the previous year.

Half-Yearly Performance

For the half year ended September 30, 2022, the company's revenue stood at Rs. 165.74 crore, with a profit after tax of Rs. 4.21 crore.

Operational Highlights

Commercial Syn Bags operates in the manufacturing of FIBC, bulk bags, poly tarpaulin, woven sacks/bags, and trading of granules. In a strategic move to expand its operations, the company has acquired leasehold land, building, and machinery from Geotech Worldwide for Rs. 30.57 crore. The company anticipates commencing commercial production at this new facility by April 2023.

Management Approval

The board of directors convened on November 14, 2022, to review and approve these financial results, ensuring compliance with regulatory requirements.

Financial Analysis

Metric	Q2 FY2023	Q1 FY2023	Q2 FY2022	YoY Change
Revenue	73.05	92.69	75.88	-3.73%
Profit After Tax	0.04	4.18	-4.35	100.92%

Note: Revenue and Profit After Tax figures are in Rs. crore

The quarterly results indicate that while Commercial Syn Bags has managed to maintain a relatively stable revenue stream, its profitability has been severely impacted. The drastic reduction in profit margins suggests potential challenges in cost management or pricing pressures in the market.

The acquisition of new assets from Geotech Worldwide demonstrates the company's commitment to growth and expansion. However, the impact of this investment on the company's financial performance will only be evident when commercial production begins at the new facility.

As Commercial Syn Bags navigates through these challenging times, investors and stakeholders will be keenly watching how the company manages to improve its profit margins while leveraging its new assets to drive growth in the competitive packaging industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.90%	+1.15%	+5.24%	+66.59%	+141.98%	+88.70%

Commercial Syn Bags Limited , a manufacturer of FIBC, PP Fabric, Woven Sacks & Tarpaulin, has released its financial results for the quarter ended June 30, 2020, revealing the impact of the COVID-19 pandemic on its operations.

Financial Performance

The company reported revenue from operations of Rs 3,502.04 lakhs for the quarter, marking a 14.2% decrease compared to Rs 4,081.56 lakhs in the same quarter of the previous year. Net profit also saw a slight decline, dropping to Rs 214.89 lakhs from Rs 229.06 lakhs year-over-year, representing a 6.2% decrease.

Financial Metric	Q1 FY2021 (Rs lakhs)	Q1 FY2020 (Rs lakhs)	Change (%)
Revenue	3,502.04	4,081.56	-14.2%
Net Profit	214.89	229.06	-6.2%

COVID-19 Impact

Commercial Syn Bags acknowledged that its operations were significantly impacted by the COVID-19 pandemic during the quarter. The company faced increased operational costs as a result of the challenging business environment.

Business Segments

The company operates in three main segments:

Manufacturing and sale of various bags and fabrics
Trading of granules
Solar power generation

Commercial Syn Bags maintains a 1.0 MW solar power project for captive consumption, demonstrating its commitment to sustainable energy practices.

New Developments

Subsidiary Formation

On August 26, 2020, the company formed a wholly-owned subsidiary named 'Comsyn India Private Limited', potentially expanding its operational capabilities.

Unit-II Project Delay

The company reported delays in a new project at Unit-II. The capital investment for this project has reached Rs 1,662 lakhs, exceeding the estimated cost of Rs 1,500 lakhs. Commercial Syn Bags expects commercial production at this unit to commence in September 2020.

Looking Ahead

Despite the challenges posed by the COVID-19 pandemic, Commercial Syn Bags Limited continues to move forward with its expansion plans. The company's diverse product portfolio and investments in solar power generation may help in navigating the current economic uncertainties.

As the situation evolves, stakeholders will be watching closely to see how the company adapts to the changing market conditions and whether the commencement of the new Unit-II project will contribute to improved performance in the coming quarters.