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INEOS Styrolution
08-Nov-19   18:25 Hrs IST
INEOS Styrolution net sales fell 23% to Rs 436.84 crore in Q2FY20 compared to Q2FY19. The company operating margins rose 110 bps to 3.5% leading to 15% increase in operating profits to Rs 15.44 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) was down 470 bps to 79.5% while employee benefit expenses was up 100 bps to 3.3% and other expenses increased 240 bps to 13.7%.

Other income decreased 68% to Rs 1.77 crore compared to Rs 5.59 crore. Interest cost was up 63% to Rs 2.98 crore. Depreciation rose 12% to Rs 7.19 crore. PBT was down 34% to Rs 7.05 crore.

Tax expense during the quarter was a credit of Rs 2.83 crore compared to tax expense of Rs 3.71 crore. PAT reported was up 41% to Rs 9.88 crore.

Segment wise, Specialties revenue stood at Rs 330.44 crore, down by 25% YoY and accounted for 76% of total sales. PBIT from the same was down by 40% to Rs 14.08 crore. PBIT margin was at 4.3% as compared to 5.3% for Sep18 quarter.

For the quarter, sales from the polystyrene segment stood at Rs 106.41 crore down by 18% YoY and accounted for 24% of total sales. PBIT from the same reported a loss of Rs 0.94 crore compared to loss of Rs 6.7 crore in Sep18 quarter.

Performance for the half year ended September 2019

For 6 months ended Sep 19, net sales were down by 24% to Rs 880.32 crore. OPM stood at 4.4% as compared to 3.9% for H1FY 19, thus resulting in a 13% decrease in OP to Rs 39.14 crore. Other income was down by 57% to Rs 3.64 crore. Interest cost was up by 91% to Rs 7.07 crore while depreciation is up by 14% to Rs 14.35 crore. This resulted in 43% decrease in PBT to Rs 21.38 crore. After considering total tax expense of Rs 2.21 crore, PAT for 6 months ended Sep 19 decreased 20% to Rs 19.17 crore.

Specialties- For the 6 months ended Sep19, net sales in specialties segment was down by 26% YoY to Rs 650.79 crore and accounted for 74% of total sales. PBIT stood at Rs 24.63 crore with PBIT margin of 3.8%.

Polystyrene - The segment reported net sales of Rs 229.53 crore down by 20% YoY. PBIT stood at Rs 4.91 crore as compared to loss at PBIT of Rs 7.34 crore.

The scrip is currently trading at Rs 671

Ineos Styrolution India: Results


1909(03)1809(03)Var .(%)1909(06)1809(06)Var .(%)1903(12)1803(12)Var. (%)
Other inc.1.775.59-683.648.48-5713.136.9190
Tax -2.833.71-1762.2113.42-84-6.0136.91LP
* Annualized On Current Equity Of Rs 17.59 Crore of face value of Rs 10 each
# EPS not annualized due to seasonality of business
Var (%) exceeding 999 is restricted to 999
EO: Extraordinary Items, PL : Profit to Loss, LP : Loss to Profit
Figures in crore, Source: Capitaline Database

INEOS Styrolution: Segment Results


Particulars1909 (3)1809 (3)% of totalVar. (%)1909 (6)1809 (6)% of totalVar. (%)1903 (12)1803 (12)% of totalVar. (%)
Segment Revenue
Polystyrene106.41129.03 24-18229.53288.06 26-20542.15556.7226-3
Segment Results
Less: Interest2.080.005.311.5110.249.518
Less: Other Unallocable Items4.015.852.8511.4410.253.68178
Figures in Rs crore.
LP: Loss to Profit PL: Profit to Loss

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