13 Nov , 2024 By : Debdeep Gupta
Shares of EPack Durable took a hit, falling 5 percent on November 13 after the company reported a widening net loss in Q2FY25. The consolidated net loss rose to Rs 8.5 crore, up from Rs 6.1 crore in the same period last year.
By 9:30 AM, shares were trading at Rs 462.50, showing a 5 percent drop. The stock has doubled in value year-to-date.
In Q2FY25, EPack Durable's revenue saw robust growth, more than doubling to Rs 377 crore due to high industry demand, an extended summer season, and new customer additions. However, expenses also surged, more than doubling to Rs 392.8 crore, putting pressure on the company's financial performance.
The company's product segment drove 98 percent of total revenue, with Room Air Conditioners (RAC) alone contributing to 70 percent of product revenue and recording a 187 percent YoY growth.
Operating EBITDA for the quarter increased by 25 percent YoY to Rs 9.6 crore. EBITDA margins, however, contracted by 177 basis points to 2.55 percent.
EPack Durable’s H1FY25 revenue rose by 87 percent year-on-year to Rs 1,150.8 crore, driven by strong growth momentum through strategic initiatives. Key factors supporting this growth included increased capacity utilization at the newly commissioned Sricity and Bhiwadi plants, enabling the company to meet rising demand more effectively. Net profit for H1FY25 saw a significant jump, rising 452 percent year-on-year to Rs 14.9 crore.
Ajay DD Singhania, Managing Director & CEO said, "EPack Durable's strategic focus on a diversified customer base and expanded production capabilities demonstrates its commitment to capturing new business opportunities in the RAC and Small Home Appliances markets. Full backward integration further strengthens its competitive advantage, allowing the company to produce critical components in-house, thereby improving cost efficiency and quality control."
EPack Durable, founded in 2019, is an Original Design Manufacturer (ODM) for room air conditioners.
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