Hindware Home Innovation Limited posted its fiscal fourth quarter profit at Rs 22.29 crore, down 40.3 per cent from Rs 37.31 crore in the corresponding quarter of last year. It posted revenue from operations at Rs 767.85 crore, up 12 per cent in comparison to Rs 685.63 crore in the fourth quarter of FY22. The company EBITDA stood at Rs 90 crore, up 33 per cent on-year and the company registered a sequential growth of 8 per cent in the topline and an expansion of 49 per cent in EBITDA against the backdrop of an improving market environment and a strong focus on productivity and efficiency.
While the total income for the quarter was at Rs 775.0 crore, total expenses were at Rs 736.54 crore. “We have delivered a strong performance, despite inflation, elevated interest rates, and geopolitical uncertainties,” said Sandeep Sikka, Group CFO, Hindware Home Innovation Limited.
Hindware Home Innovation’s performance across business verticals
While the company’s consumer appliances business clocked revenue of Rs 127.54 crore, retail business revenue was at Rs 13.19 crore and building products segment registered a revenue of Rs 627.12 crore during the fourth quarter of FY23.
In terms of full year, the consumer appliances business maintained its revenue despite a challenging macroeconomic landscape resulting from higher inflation, as it increased 16 per cent over the previous year to Rs 501 crore. The building products business which comprises sanitaryware, faucets, and plastic pipes and fittings grew strongly by 29 per cent over FY22 to Rs 2316 crore. The bathware business achieved growth and margins on the back of an innovative product portfolio, enhanced brand awareness, diverse product range and strong distribution network. The company’s plastic pipes and fittings brand Truflo maintained its position as the fastest-growing in its segment. In FY23, the brand registered revenue from operations at Rs 785 crore. “We undertook several key initiatives to further strengthen our industry-leading growth in the sanitaryware and faucet segment and the results are visible. Our plastic pipes and fittings business continues to be the fastest-growing brand in the segment and we anticipate exceeding our target of achieving Rs 1000 crore in sales before FY25,” said Sandip Somany, Chairman, Hindware Home Innovation Limited.
Growth plans
Going forward, Hindware Home Innovation said, the focus will continue to be on innovation, expansion of distribution, and enhancing operating efficiencies and supply chain. “With respect to the bathware business which comprises the sanitaryware and faucets segment, we anticipate a growth of around 18-21 per cent over the next 12-18 months. Our plastic pipes and fittings brand Truflo, is currently one of the fastest growing in the industry and we expect a positive growth of around 20-25 per cent in the segment,” said Sandeep Sikka.
The company is also setting up a plant in Roorkee in Uttarakhand with an investment of Rs 180 crore targeting an initial production capacity of 12,500 MT annually, with the ability to further expand this capacity to 25,000 MT. Further, it is also working towards improving margins in this business by proactively increasing in-house sourcing while reducing the outsourcing of high-value products. “Given the planned initiatives, we are hopeful that we will be able to expand the margins by 3- 4 per cent over the next 18-24 months,” concluded Sandeep Sikka.