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Q3FY12 & 9MFY12 Results:
During Q3FY12, net profit surged by 42.3% to `22.2 crore (`15.6 crore) on 50.0% higher sales of `345.0 crore (`230.0 crore). OP and NP margin stood at 18.0% and 6.4% as against 18.2% and 6.8% respectively in Q3FY11. (YoY)
During 9MFY12, net profit advanced by 24.7% to `60.0 crore on 43.2% higher sales of `953.2 crore. OP and NP margin stood at 17.9% and 6.3% Vs 17.5% and 7.2% respectively in 9MFY11. 9MFY12 EPS works out to `46.5 Vs `37.3 in 9MFY11.
Company Description:
PAL, a Mumbai based company established in 1994, is engaged in the production and sale of Aluminium Foil Containers (AFC) together with lids or covers and Aluminium Foil Rolls (AFR). It came out with its IPO in 1997. PAL is the largest manufacturer and exporter of Aluminium Foil Containers (AFC) and also one of the biggest manufacturers in Aluminium Foil Rolls (AFRs) and Aluminium Lids, in India. Its two plants are located at Union Territory of Dadra and Nagar Haveli, India. From January 2009, PAL has been adjudged as 100 per cent EOU.
PAL manufactures these products with various sizes, shapes and microns. Aluminium Foil containers are utensils, pans, trays, packing materials made from Aluminium Foil. AFC’s has increased its capacity (casseroles/trays & containers/dishes) from 4, 000 million to 5, 750 million pieces per annum; AFR’s from 75 million to 98 million pieces per annum; and Aluminium lids from 1200 million to 1, 590 million pieces per annum.
The products find its application in packaging of food items in travel industry such as airlines, railways, fast food chains, restaurants, hotels etc and also find their application in household uses. PAL has set up a world-class plant to produce AFCs and is the biggest supplier of AFCs to Railways, flight kitchens, airlines and Five Star hotels. Further, it has the best production process and moulds to produce the widest range of products.
PAL’s manufacturing location attracted sales tax benefits for 15 years (six years left). Its products were exempted under certain notifications and subsequent to it, EOU duties were payable but at concessional rates, resulting in cost benefit. PAL is getting the tax benefit for 100% Export Oriented Unit U/s 10B of Income Tax Act, 1961.
Tie-up with Hindalco
PAL has an exclusive tie-up with Hindalco, the only container grade raw material manufacturer in the country, for supply of Raw material. In this context, the Company also benefits from the almost ‘zero’ inward freight cost due to being in close proximity to Hindalco.
Clients
Major Airlines viz. Indian Airlines , Air India, Jet Airways etc. All the sectors of Indian Railway Catering and Tourism Corporation [IRCTC], entire Indian Railways viz. Western, Southern, South Central, Northern, Eastern and South Eastern and Railway Contractors; Flight Kitchens such as Sky Gourmet, Taj Air Caterers – Mumbai, Chennai, Delhi, Ambassador Flight Kitchen, Oberoi Flight Service etc. Bakers and confectioners such as Monginis,
Ambassador’s Croissants, Taj Birdys etc. Retailers such as Pantaloon Retail (Food Bazaar) and Reliance Retail (Reliance Fresh), P.S.U.s such as N.T.P.C., Rihand Nagar, Terminal Ballistic Research Laboratory, Chandigarh (Ministry of Defence), Many leading Hotels, Restaurants of Mumbai, Delhi, Kolkatta, Chennai, Hyderabad, Bangalore, Baroda, Pune etc.
Global clients include B.E. International, U.K. (Danone Group company), SOP International, U.K. (Major in Food packaging industry), Majors in Food and catering supplies in U.K. such as J.K. Foods Ltd Spiral Packaging, General catering supplies, Indus Foods Limited, Gafbros Limited, Wallace Packaging, Topmark Cash and Carry, Ethnic Foods, Seewoo, Kavis Ltd., Perk-up amongst others;
Alupack Gmbh and Devpack from Germany, USA, Kari-Out, Abaline, Universal, Pioneer etc. Major airlines such as Emirates Airlines, Singapore Airlines, Thai Airways, Gulf Air, Etihad Airways, Air Asthana, Srilankan Airlines, and International flight kitchens like Emirates Flight Catering Co., CIAS Flight Kitchen, and World Aviation Services.
Financial
Tiny equity capital of `12.9 crore is supported by huge book value of the share of `286. PAL’s gross block increased 160% to `572.7 crore from `220 crore in FY10 owing to its expanded capacity becoming operational. Debt equity ratio as at FY12 works out to 1.5:1.
The above both expansion was financed through internal accruals, debt and issue of preferential warrants converted at a various price of `260, `225, `115 and `105 from time to time. With its two manufacturing facilities situated strategically in the tax haven of the Union Territory of Dadra and Nagar Haveli, India, the tax outgo is rather minimal.
Prospects
Packaging accounts for around 11% of aluminium usage in India as compared to a global share of around 20%. Given the rising middle-class and with an increasing disposable income, health awareness and the preference for eco-friendly packaging and serving solutions, the demand for AFCs is set to increase at a rapid pace. As the Indian economy matures, this share is expected to move towards the global level of 20%.
The industry in which PAL operates is at a very nascent stage in India as the usage is largely restricted to airlines and railways. However with increased awareness for health and hygiene the demand for AFCs and AFRs is expected to pick up over the next couple of years in a big way.
Moreover, AFCs and AFRs are slowly and steadily replacing other packaging substitutes like plastic, porcelain and glass containers as AFC’s offer various advantages; Aluminum Foil has amazing properties. It is light weight, aesthetic, attractive, resistant to odour, water, air, light, gas, oil and grease and possesses high thermal and electrical conductivity features. All this adds up to a highly versatile product that can be used in myriad applications from the traditional food industry to the hi-tech electronics and telecommunications industry
Tie-up with Hindalco
PAL has an exclusive tie-up with Hindalco, the only container grade raw material manufacturer in the country, for supply of Raw material. In this context, the Company also benefits from the almost ‘zero’ inward freight cost due to being in close proximity to Hindalco.
Clients
Major Airlines viz. Indian Airlines , Air India, Jet Airways etc. All the sectors of Indian Railway Catering and Tourism Corporation [IRCTC], entire Indian Railways viz. Western, Southern, South Central, Northern, Eastern and South Eastern and Railway Contractors; Flight Kitchens such as Sky Gourmet, Taj Air Caterers – Mumbai, Chennai, Delhi, Ambassador Flight Kitchen, Oberoi Flight Service etc. Bakers and confectioners such as Monginis,
Ambassador’s Croissants, Taj Birdys etc. Retailers such as Pantaloon Retail (Food Bazaar) and Reliance Retail (Reliance Fresh), P.S.U.s such as N.T.P.C., Rihand Nagar, Terminal Ballistic Research Laboratory, Chandigarh (Ministry of Defence), Many leading Hotels, Restaurants of Mumbai, Delhi, Kolkatta, Chennai, Hyderabad, Bangalore, Baroda, Pune etc.
Global clients include B.E. International, U.K. (Danone Group company), SOP International, U.K. (Major in Food packaging industry), Majors in Food and catering supplies in U.K. such as J.K. Foods Ltd Spiral Packaging, General catering supplies, Indus Foods Limited, Gafbros Limited, Wallace Packaging, Topmark Cash and Carry, Ethnic Foods, Seewoo, Kavis Ltd., Perk-up amongst others;
Alupack Gmbh and Devpack from Germany, USA, Kari-Out, Abaline, Universal, Pioneer etc. Major airlines such as Emirates Airlines, Singapore Airlines, Thai Airways, Gulf Air, Etihad Airways, Air Asthana, Srilankan Airlines, and International flight kitchens like Emirates Flight Catering Co., CIAS Flight Kitchen, and World Aviation Services.
Financial
Tiny equity capital of `12.9 crore is supported by huge book value of the share of `286. PAL’s gross block increased 160% to `572.7 crore from `220 crore in FY10 owing to its expanded capacity becoming operational. Debt equity ratio as at FY12 works out to 1.5:1.
The above both expansion was financed through internal accruals, debt and issue of preferential warrants converted at a various price of `260, `225, `115 and `105 from time to time. With its two manufacturing facilities situated strategically in the tax haven of the Union Territory of Dadra and Nagar Haveli, India, the tax outgo is rather minimal.
Prospects
Packaging accounts for around 11% of aluminium usage in India as compared to a global share of around 20%. Given the rising middle-class and with an increasing disposable income, health awareness and the preference for eco-friendly packaging and serving solutions, the demand for AFCs is set to increase at a rapid pace. As the Indian economy matures, this share is expected to move towards the global level of 20%.
The industry in which PAL operates is at a very nascent stage in India as the usage is largely restricted to airlines and railways. However with increased awareness for health and hygiene the demand for AFCs and AFRs is expected to pick up over the next couple of years in a big way.
Moreover, AFCs and AFRs are slowly and steadily replacing other packaging substitutes like plastic, porcelain and glass containers as AFC’s offer various advantages; Aluminum Foil has amazing properties. It is light weight, aesthetic, attractive, resistant to odour, water, air, light, gas, oil and grease and possesses high thermal and electrical conductivity features. All this adds up to a highly versatile product that can be used in myriad applications from the traditional food industry to the hi-tech electronics and telecommunications industry
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Q3FY12 & 9MFY12 Results:
During Q3FY12, net profit surged by 42.3% to `22.2 crore (`15.6 crore) on 50.0% higher sales of `345.0 crore (`230.0 crore). OP and NP margin stood at 18.0% and 6.4% as against 18.2% and 6.8% respectively in Q3FY11. (YoY)
During 9MFY12, net profit advanced by 24.7% to `60.0 crore on 43.2% higher sales of `953.2 crore. OP and NP margin stood at 17.9% and 6.3% Vs 17.5% and 7.2% respectively in 9MFY11. 9MFY12 EPS works out to `46.5 Vs `37.3 in 9MFY11.
Company Description:
PAL, a Mumbai based company established in 1994, is engaged in the production and sale of Aluminium Foil Containers (AFC) together with lids or covers and Aluminium Foil Rolls (AFR). It came out with its IPO in 1997. PAL is the largest manufacturer and exporter of Aluminium Foil Containers (AFC) and also one of the biggest manufacturers in Aluminium Foil Rolls (AFRs) and Aluminium Lids, in India. Its two plants are located at Union Territory of Dadra and Nagar Haveli, India. From January 2009, PAL has been adjudged as 100 per cent EOU.
PAL manufactures these products with various sizes, shapes and microns. Aluminium Foil containers are utensils, pans, trays, packing materials made from Aluminium Foil. AFC’s has increased its capacity (casseroles/trays & containers/dishes) from 4, 000 million to 5, 750 million pieces per annum; AFR’s from 75 million to 98 million pieces per annum; and Aluminium lids from 1200 million to 1, 590 million pieces per annum.
The products find its application in packaging of food items in travel industry such as airlines, railways, fast food chains, restaurants, hotels etc and also find their application in household uses. PAL has set up a world-class plant to produce AFCs and is the biggest supplier of AFCs to Railways, flight kitchens, airlines and Five Star hotels. Further, it has the best production process and moulds to produce the widest range of products.
PAL’s manufacturing location attracted sales tax benefits for 15 years (six years left). Its products were exempted under certain notifications and subsequent to it, EOU duties were payable but at concessional rates, resulting in cost benefit. PAL is getting the tax benefit for 100% Export Oriented Unit U/s 10B of Income Tax Act, 1961.
Tie-up with Hindalco
PAL has an exclusive tie-up with Hindalco, the only container grade raw material manufacturer in the country, for supply of Raw material. In this context, the Company also benefits from the almost ‘zero’ inward freight cost due to being in close proximity to Hindalco.
Clients
Major Airlines viz. Indian Airlines , Air India, Jet Airways etc. All the sectors of Indian Railway Catering and Tourism Corporation [IRCTC], entire Indian Railways viz. Western, Southern, South Central, Northern, Eastern and South Eastern and Railway Contractors; Flight Kitchens such as Sky Gourmet, Taj Air Caterers – Mumbai, Chennai, Delhi, Ambassador Flight Kitchen, Oberoi Flight Service etc. Bakers and confectioners such as Monginis,
Ambassador’s Croissants, Taj Birdys etc. Retailers such as Pantaloon Retail (Food Bazaar) and Reliance Retail (Reliance Fresh), P.S.U.s such as N.T.P.C., Rihand Nagar, Terminal Ballistic Research Laboratory, Chandigarh (Ministry of Defence), Many leading Hotels, Restaurants of Mumbai, Delhi, Kolkatta, Chennai, Hyderabad, Bangalore, Baroda, Pune etc.
Global clients include B.E. International, U.K. (Danone Group company), SOP International, U.K. (Major in Food packaging industry), Majors in Food and catering supplies in U.K. such as J.K. Foods Ltd Spiral Packaging, General catering supplies, Indus Foods Limited, Gafbros Limited, Wallace Packaging, Topmark Cash and Carry, Ethnic Foods, Seewoo, Kavis Ltd., Perk-up amongst others;
Alupack Gmbh and Devpack from Germany, USA, Kari-Out, Abaline, Universal, Pioneer etc. Major airlines such as Emirates Airlines, Singapore Airlines, Thai Airways, Gulf Air, Etihad Airways, Air Asthana, Srilankan Airlines, and International flight kitchens like Emirates Flight Catering Co., CIAS Flight Kitchen, and World Aviation Services.
Financial
Tiny equity capital of `12.9 crore is supported by huge book value of the share of `286. PAL’s gross block increased 160% to `572.7 crore from `220 crore in FY10 owing to its expanded capacity becoming operational. Debt equity ratio as at FY12 works out to 1.5:1.
The above both expansion was financed through internal accruals, debt and issue of preferential warrants converted at a various price of `260, `225, `115 and `105 from time to time. With its two manufacturing facilities situated strategically in the tax haven of the Union Territory of Dadra and Nagar Haveli, India, the tax outgo is rather minimal.
Prospects
Packaging accounts for around 11% of aluminium usage in India as compared to a global share of around 20%. Given the rising middle-class and with an increasing disposable income, health awareness and the preference for eco-friendly packaging and serving solutions, the demand for AFCs is set to increase at a rapid pace. As the Indian economy matures, this share is expected to move towards the global level of 20%.
The industry in which PAL operates is at a very nascent stage in India as the usage is largely restricted to airlines and railways. However with increased awareness for health and hygiene the demand for AFCs and AFRs is expected to pick up over the next couple of years in a big way.
Moreover, AFCs and AFRs are slowly and steadily replacing other packaging substitutes like plastic, porcelain and glass containers as AFC’s offer various advantages; Aluminum Foil has amazing properties. It is light weight, aesthetic, attractive, resistant to odour, water, air, light, gas, oil and grease and possesses high thermal and electrical conductivity features. All this adds up to a highly versatile product that can be used in myriad applications from the traditional food industry to the hi-tech electronics and telecommunications industry
Tie-up with Hindalco
PAL has an exclusive tie-up with Hindalco, the only container grade raw material manufacturer in the country, for supply of Raw material. In this context, the Company also benefits from the almost ‘zero’ inward freight cost due to being in close proximity to Hindalco.
Clients
Major Airlines viz. Indian Airlines , Air India, Jet Airways etc. All the sectors of Indian Railway Catering and Tourism Corporation [IRCTC], entire Indian Railways viz. Western, Southern, South Central, Northern, Eastern and South Eastern and Railway Contractors; Flight Kitchens such as Sky Gourmet, Taj Air Caterers – Mumbai, Chennai, Delhi, Ambassador Flight Kitchen, Oberoi Flight Service etc. Bakers and confectioners such as Monginis,
Ambassador’s Croissants, Taj Birdys etc. Retailers such as Pantaloon Retail (Food Bazaar) and Reliance Retail (Reliance Fresh), P.S.U.s such as N.T.P.C., Rihand Nagar, Terminal Ballistic Research Laboratory, Chandigarh (Ministry of Defence), Many leading Hotels, Restaurants of Mumbai, Delhi, Kolkatta, Chennai, Hyderabad, Bangalore, Baroda, Pune etc.
Global clients include B.E. International, U.K. (Danone Group company), SOP International, U.K. (Major in Food packaging industry), Majors in Food and catering supplies in U.K. such as J.K. Foods Ltd Spiral Packaging, General catering supplies, Indus Foods Limited, Gafbros Limited, Wallace Packaging, Topmark Cash and Carry, Ethnic Foods, Seewoo, Kavis Ltd., Perk-up amongst others;
Alupack Gmbh and Devpack from Germany, USA, Kari-Out, Abaline, Universal, Pioneer etc. Major airlines such as Emirates Airlines, Singapore Airlines, Thai Airways, Gulf Air, Etihad Airways, Air Asthana, Srilankan Airlines, and International flight kitchens like Emirates Flight Catering Co., CIAS Flight Kitchen, and World Aviation Services.
Financial
Tiny equity capital of `12.9 crore is supported by huge book value of the share of `286. PAL’s gross block increased 160% to `572.7 crore from `220 crore in FY10 owing to its expanded capacity becoming operational. Debt equity ratio as at FY12 works out to 1.5:1.
The above both expansion was financed through internal accruals, debt and issue of preferential warrants converted at a various price of `260, `225, `115 and `105 from time to time. With its two manufacturing facilities situated strategically in the tax haven of the Union Territory of Dadra and Nagar Haveli, India, the tax outgo is rather minimal.
Prospects
Packaging accounts for around 11% of aluminium usage in India as compared to a global share of around 20%. Given the rising middle-class and with an increasing disposable income, health awareness and the preference for eco-friendly packaging and serving solutions, the demand for AFCs is set to increase at a rapid pace. As the Indian economy matures, this share is expected to move towards the global level of 20%.
The industry in which PAL operates is at a very nascent stage in India as the usage is largely restricted to airlines and railways. However with increased awareness for health and hygiene the demand for AFCs and AFRs is expected to pick up over the next couple of years in a big way.
Moreover, AFCs and AFRs are slowly and steadily replacing other packaging substitutes like plastic, porcelain and glass containers as AFC’s offer various advantages; Aluminum Foil has amazing properties. It is light weight, aesthetic, attractive, resistant to odour, water, air, light, gas, oil and grease and possesses high thermal and electrical conductivity features. All this adds up to a highly versatile product that can be used in myriad applications from the traditional food industry to the hi-tech electronics and telecommunications industry
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