homeearnings NewsCCL Products India revenue grows despite Red Sea induced supply chain challenges in FY24
CCL Products India revenue grows despite Red Sea-induced supply-chain challenges in FY24
Challa Srishant, the Managing Director of CCL Products India, shared insights in an interview with CNBC-TV18 following the company's earnings report for Q3FY24.
Andhra Pradesh-based CCL Products India recorded volume growth of around 14% in the third quarter of the fiscal year 2023–24 amid the ongoing Red Sea crisis that resulted in a couple of deferred shipments, which were later dispatched in January.
Challa Srishant, the Managing Director of CCL Products India, discussed the company's third-quarter earnings and future outlook with CNBC-TV18. Srishant said, "However, if those shipments had arrived on time, the growth would have been close to 19–20% in Q3. What didn't come in the previous quarter will be reflected in this quarter (Q4FY24). So, overall, there won't be much of an impact for the year."
Combining both coffee and food products, the finest coffee producer reported substantial revenue growth for Q3FY24 compared to the same period last year, marking a robust increase of 24% to ₹664.48 crore from ₹535.29 crore.
However, the EBITDA (gross unit) increased by 10%, reaching ₹110.93 crore from ₹100.71 crore in the previous year. Despite this, the EBITDA margin (return on investment) saw a slight decline, standing at 16.7% compared to 18.8% in the previous year.
Furthermore, the net profit (return on investment) witnessed a decrease of 13%, with figures amounting to ₹63.28 crore compared to ₹73.06 crore in the same quarter of the previous fiscal year.
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Discussing the Red Sea crisis, Srishant stated, "More than 70% of our contracts are cost, insurance, and freight (CIF) contracts, so whatever is the cost, it gets passed on. Only the CIF contracts that we have done will not get passed on."
The Red Sea has become a point of concern due to attacks by Yemen-based Houthi rebels, disrupting global trade as ships passing through the Suez Canal, a critical sea route connecting Asia and Europe, are targeted.
CCL Products India has seen a 2.30% increase in its stock since last month, with a market capitalisation of ₹8,584.96 crore.
For more details, watch the accompanying video
(Edited by : Ajay Vaishnav)
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