CCL Products’ Gross Margin Expand On Better Product Mix In Q3: IDBI Capital  

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IDBI Capital Report

CCL Product Ltd.’s Q3 FY21 sales was weaker than our forecast due to lower than expected offtake.

Its net sales was 11% below our estimate at Rs 2,962 million (up 2% YoY) as offtake was affected by logistics issues.

Nevertheless, gross margin expanded 386 basis points to 55.0% in Q3 FY21 indicating an improvement in product mix.

However, other expenditure jumped 37% YoY to Rs 745 million and resulted in a drop in Ebitda by 18% YoY to Rs 688 million.

Ebitda margin contracted 458 basis points YoY to 23.2%.

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