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EPACK Durable Limited India’s leading room air conditioner and other small domestic appliances original design manufacturer announces its results for the third quarter of financial year 2023-24.
Revenue growth remained flattish on a YoY basis in Q3-FY24 and 9M-FY24, primarily due to the effects of weather disruption in Q1 FY24, that lead to inventory destocking by customers in Q2 and Q3, resulting in lower demand, however this situation has now reversed as many brands have reported strong Q3 sales, and anticipate a strong summer season.
The manufacturing capacity of the company has increased by 50% YoY in Q3-FY24 since the commissioning of Sricity (Andhra Pradesh) facility, hence the company is well equipped to cater to the upcoming summer season.
Added a new product category of Air-Coolers which the Company started manufacturing recently.
Additionally, started manufacturing and supplying of components of Plastics, copper, Cross Flow fan, Sheet Metal from Bhiwadi & Sricity facility for certain major brands.The company has significantly reduced its Working Capital Days from 90days in FY23 to 51 days in Q3-FY24.
Furthermore, the company has reduced its debt position through internal accruals, resulting in reduction of debt to equity from 1.58x in FY23 to 0.73x in Q3-FY24.
Commenting on the performance of the company, Ajay DD Singhania - MD & CEO, said, “I am pleased to announce our Q3-FY24 results as a newly listed company. EPACK Durable has a shown a strong bottomline performance this quarter with over 400% growth in EBITDA on a year-on-year basis. We have significantly improved our operational efficiencies by reducing our working capital days and also our debt levels despite significant capacity expansions. Furthermore, we continue to diversify our product mix and expand our client base, as we prepare for our next phase of growth. With our continued focus on growth while improving profitability, we are confident of delivering sustained superior performance over the coming quarters.”
