Hawkins Cookers - Better Days ahead... - Wallfort Financial Services

Hawkins Cookers Ltd. posted excellent revenue growth of 37.6% on Q-o-Q basis for Q2FY13, however on Y-o-Y basis it has grown by 15.1%. Hawkins clocked highest ever revenue of Rs.1115.89mn for Q2FY13 against Rs.969.55mn for Q2FY12. For H1FY13, company registered topline growth of 13% only due to - a) delay in getting No Objection Certificate from the Punjab Pollution Control Board for Hoshiarpur factory, and b) Labour issue at the Jaunpur plant.

On 22nd October, 2012, the company has received a No Objection from the Punjab Pollution Control Board for Hoshiarpur factory for manufacturing 5,200 pressure cookers and their components per day (pd), as applied for by the Company.

The company also largely managed to resolve labour issue in Jaunpur factory by signing the Wage Agreement between the Company and 85% of the workmen and registration of the said Agreement on October 20, 2012 by the Assistant Labour Commissioner, Varanasi.

During H1FY13, company has manufactured pressure cookers at restricted level of 2,800pd at Hoshiarpur factory. With the receipt of the No objection certificate at Hoshiarpur plant and signing of wage agreement at Jaunpur plant, the overall capacity and capacity utilisation will improve, result in better days ahead.

EBIDTA margin improved by 423bps on Q-o-Q basis

In Q2FY13, Hawkins's EBITDA margin stood at 13.45%, which has shown a substantial improvement of 423bps on Q-o-Q basis but it has declined by 92bps on Y-o-Y basis, due sharp increase in other expenditure. For H1FY13, Hawkins's EBITDA margins have declined by 288bps to 11.67%, due to increased Advertisement cost and higher other expenditure.

Net Profit margin decline by 53bps on Y-o-Y basis

Hawkins's net profit margin in Q2FY13 stood at 8.94%, showing a marginal decline of 53bps on Y-o-Y basis. Net profit margin for H1FY13 declined by 172bps to 7.85% over previous year.

Source : Equity Bulls

Keywords