Emmbi Industries Posts Marginal Profit Growth in Q1, Completes Warrant Conversion
Emmbi Industries Limited, a polymer-based products manufacturer, reported a 4.04% increase in net profit to Rs 16.99 million for Q1 ended June 30, despite a 3.12% decrease in net sales to Rs 1041.63 million. Profit before tax rose marginally by 1.02% to Rs 22.82 million. The company received Rs 26 crore for converting 566,667 warrants into equity shares, increasing its paid-up equity share capital to Rs 192.40 million. Managing Director Makrand Appalwar noted improved bottom line despite sales dip and strengthened capital base.
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Emmbi Industries Limited , a leading manufacturer of polymer-based products, has reported a slight increase in net profit for the first quarter. The company's financial results show a modest growth in profitability despite a decrease in sales revenue.
Financial Performance
For the quarter ended June 30, Emmbi Industries reported:
| Particulars (in Rs. millions) | Q1 | Q4 | QoQ Change |
|---|---|---|---|
| Net Sales | 1041.63 | 1075.17 | -3.12% |
| Net Profit | 16.99 | 16.33 | +4.04% |
| Profit Before Tax | 22.82 | 22.59 | +1.02% |
| Basic EPS (in Rs.) | 0.88 | 0.91 | -3.30% |
The company's net profit increased by 4.04% to Rs 16.99 million in Q1, compared to Rs 16.33 million in the previous quarter. However, net sales decreased by 3.12% to Rs 1041.63 million from Rs 1075.17 million in the prior quarter.
Profit before tax remained relatively stable at Rs 22.82 million, showing a slight increase of 1.02% from Rs 22.59 million in the previous quarter. Basic earnings per share stood at Rs 0.88, down from Rs 0.91 in Q4.
Operational Highlights
Emmbi Industries continues to operate in a single segment of polymer-based products. The company's consolidated results include its subsidiary companies, Zastian PTE Limited (Singapore) and Zastian Europe GmbH (Germany).
Capital Restructuring
During the quarter, Emmbi Industries received Rs 26 crore towards the balance warrants for conversion of 566,667 warrants into an equivalent number of equity shares. This move has led to an increase in the company's paid-up equity share capital, which now stands at Rs 192.40 million as of June 30, compared to Rs 184.74 million at the end of the previous quarter.
Management Commentary
Makrand Appalwar, Managing Director of Emmbi Industries, stated, "Despite a slight dip in sales, we've managed to improve our bottom line this quarter. The completion of our warrant conversion process has strengthened our capital base, positioning us well for future growth opportunities."
Auditor's Review
R. Daliya & Associates, the company's statutory auditors, have carried out a limited review of the unaudited financial results for the quarter ended June 30. They reported that nothing has come to their attention that causes them to believe that the financial statements have not been prepared in accordance with applicable accounting standards and regulations.
Emmbi Industries' ability to maintain profitability despite reduced sales demonstrates the company's resilience and efficient cost management. As the company moves forward with a strengthened capital structure, investors and stakeholders will be watching closely to see how these developments translate into future performance and growth strategies.
Note: All figures are based on the consolidated financial results as per Indian Accounting Standards (Ind AS).
Historical Stock Returns for Emmbi Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.34% | -3.61% | +2.44% | +11.65% | -25.25% | +21.09% |
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