Bhansali Engineering Polymers Ltd., a polymer and other allied products manufacturer based in India announced its results for the second quarter ended September 30, 2021.
Q2 Results- QoQ
The company’s net profit grew 59.8% to Rs 123.6 crores ($16.4 million) for the period ended Septem-ber 30, 2021 as against net profit of Rs 77.38 crores ($10.3 million) for the previous quarter.
Net sales increased 59.7% to Rs 378.3 crores ($50.2 million) during the period ended September 30, 2021 as compared to Rs 236.79 crores ($31.4 million) during the previous quarter.
Q2 Results- YoY
The company’s net profit increased 248.3% to Rs 123.6 crores ($16.4 million) for the period ended Sep-tember 30, 2021 as against net profit of Rs 35.5 crores ($4.7 million) for the prior-year quarter.
Net sales grew 22.2% to Rs 378.3 crores ($50.2 million) during the period ended September 30, 2021 as compared to Rs 309.54 crores ($41.1 million) during the prior-year quarter.
Half-Year Results- YoY
The company’s net profit grew 489.24% to Rs 201.05 crores ($26.7 million) for the 6 months period ended September 30, 2021 as against net profit of Rs 34.11 crores ($4.7 million) for the prior-year 6 months period.
Net sales increased 48.7% to Rs 615.1 crores ($81.6 million) during the 6 months period ended Sep-tember 30, 2021 as compared to Rs 413.67 crores ($56.6 million) during the prior-year 6 months period.
Board approves Brownfield ABS Expansion Project
The Bhansali Engineering Polymers Board has approved a brownfield ABS expansion project at the company’s existing plants for enhancing overall ABS production capacity to 2,00,000 TPA.
The Environmental Clearance for 50,000 TPA HRG (for captive consumption to manufacture 200,000 TPA ABS) at Satnoor Plant and 130,000 TPA ABS Production at Abu Road Plant has already been re-ceived. The Company is in the process of obtaining Environmental Clearance for increasing the ABS capacity from 130,000 TPA to 200,000 TPA at Abu Road Plant (Rajasthan), which shall be received short-ly.
Green Field ABS Expansion Project:
• Project cost to be approx. between Rs 1500 to Rs 2000 crores ($199 to $265.5 million);
• Project implementation may take approx. 5 to 6 years.
Brown Field ABS Expansion Project:
• Capex requirement will be approx. Rs 500 crores ($66.4 million);
• Environmental Clearance at existing plants is in place which will help in expediting the Project implementation tentatively by December 2024.
Considering above, the management is of strong belief that opting for Brown Field ABS Expansion Pro-ject would be in the best interest of the Company, as the same will be funded through Reserves & Surplus and the Company will continue maintaining its “Zero Debt Status” in future as well.
Accordingly, the Management proposes to the Board of Directors, to consider and accord its approval for the Brown Field ABS Expansion Project at the Company’s existing plants at Abu Road (Rajasthan) & Satnoor (Madhya Pradesh) for enhancing overall ABS production capacity to 200,000 TPA with approx. Capex of Rs 500 crores ($66.4 million), to be funded through Reserves & Surplus which shall be imple-mented tentatively by December 2024.