AGI Greenpac hopeful of overcoming Hindustan National Glass deal hurdles soon
In an interview with CNBC-TV18, Sandeep Sikka, Chief Financial Officer at AGI Greenpac expressed optimism, stating that they anticipate resolving the court-related issues within the next 3-4 months, allowing them to proceed with their strategic plans.
Packaging products company, AGI Greenpac, is actively working to settle court-related issues surrounding its latest acquisition plan for Hindustan National Glass (HNG), the country's oldest glass manufacturer. Sandeep Sikka, Chief Financial Officer said he is hopeful of resolving the matter within 3-4 months.
Independent Sugar Corporation (INSCO) had filed a plea challenging the Competition Commission of India (CCI)’s approval of the HNG acquisition plans of AGI Greenpac. However, the New Delhi bench of the National Company Law Appellate Tribunal (NCLAT) dismissed the plea. The matter is now pending with the Supreme Court.
If the acquisition goes through, the company hopes to achieve a turnover of ₹5,000-5,500 crore over the next two to three years.
AGI Greenpac produces various glass products including containers, speciality glass, polyethylene terephthalate (PET) bottles and products, and security caps and closures.
Sikka expects a revenue run rate of 15-18% in the second half of FY24. "We still have room for substantial growth," Sikka noted, "especially considering our investment in a high-end cosmetic glass furnace with a capacity utilisation rate of 65-70%. Therefore, we anticipate maintaining the growth momentum guidance of 15-18% during the second half."
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Earlier today, AGI Greenpac reported a 20.1% year-on-year (YoY) increase in revenue, at ₹615.28 crore. The company's gross margin was at 70.3%, up from 64.6%, and EBITDA (earnings before interest, tax, depreciation, and amortisation) jumped 58% to ₹134.16 crore compared to ₹84.89 crore in the previous period.
AGI Greenpac's profit margin after tax saw an increase of 65.4%, reaching ₹56.14 crore, compared to ₹33.95 crore in the previous period.
The shares of AGI Greenpac have declined more than 2% over the past month.
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(Edited by : Shweta Mungre)
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