CCL Products (India) Ltd (NSE:CCL)
₹ 1,130 -1.2 (-0.11%) Market Cap: 150.66 Bil Enterprise Value: 161.72 Bil PE Ratio: 34.84 PB Ratio: 6.42 GF Score: 92/100

Q2 2025 CCL Products (India) Ltd Earnings Call Transcript

Nov 06, 2024 / 05:30AM GMT
Release Date Price: ₹719.75 (+7.51%)

Key Points

Positve
  • CCL Products (India) Ltd (BOM:519600) reported a significant increase in turnover, achieving INR738.2 crores for Q2 FY '25, marking a 21.5% growth compared to the same period last year.
  • The company's net profit also saw a substantial rise, standing at INR73.95 crores, reflecting a 21.5% increase year-over-year.
  • EBITDA for the quarter increased by 24.3% to INR17.6 crores, indicating strong operational performance.
  • The domestic business showed robust growth, with a gross turnover of INR200 crores in the first half, driven by branded sales.
  • The company is focusing on high-margin contracts and premium products, which has contributed to improved EBITDA margins.
Negative
  • CCL Products (India) Ltd (BOM:519600) faces challenges with volatile coffee prices, which have impacted long-term contract stability.
  • The company's working capital requirements remain high due to elevated coffee prices, affecting cash flow.
  • Interest expenses have been on an increasing trend, impacting overall profitability.
  • The company is experiencing competitive pressures from other coffee-producing regions, which could affect market share.
  • There is uncertainty regarding the implementation of the EU deforestation regulation, which could impact future sales to European markets.
Operator

Ladies and gentlemen, good day, and welcome to the CCL Products India Limited Q2 FY '25 Earnings Conference Call hosted by Nirmal Bang Equities Private Limited.

(Operator Instructions) Please note that this conference is being recorded.

I now hand the conference over to Mr. Abhishek Navalgund from Nirmal Bang Equities. Thank you, and over to you, sir.

Anirudh Gangahar;Praveen Jaipuriar
Aventus Wealth Management - Analyst;CCL Products

Thank you, Dave. Hello, everyone. On behalf of Nirmal Bang Institutional Equities, I welcome all the participants to CCL Products India Limited 2Q FY '25 earnings conference call. The management is represented by Mr. Challa Srishant, Managing Director; Mr. Praveen Jaipuriar, CEO; Mr. (inaudible), Executive Director; Mr. (inaudible), our CFO; and Ms. Sridevi Dasari, Company Secretary.

Without further ado, I would like to hand over the call to Praveen Jaipuriar, sir, for his opening comments. Post which we'll open the floor for Q&A. Thank you, and over to you, sir.

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