RUBFILA INTERNATIONAL LTD - Q2 FY 21 RESULTS REVIEW

 

RUBFILA INTERNATIONAL LTD

Q2 FY 21 RESULTS REVIEW

 

COMPANY OVERVIEW                  

Rubfila International Ltd produces adhesives suitable for various industry segments like leather and footwear, tyre Re- treading ,wood, rexin and foam, automotive, to name a few.

The Product range of the company includes:

Heat Resistance Latex Products:Talc Coated Rubber Thread.Silicon Coated Rubber Thread.Food Grade Rubber Thread.Furniture Grade Rubber Thread.Super Heat Resistant Latex.Rubber Thread.Coloured Rubber Thread.Diaper Threads and Covered Rubber Threads.

ADORIX industrial adhesives:Natural latex based,Rubber based and Resin based.              

MANAGEMENT                

Bharat J Patel             Chairman     

G Krishna Kumar         Managing Director      

QUARTERLY RESULTS:

Rubfila International (in Rs. Cr.)CONSOLIDATED	Sep '20	Jun '20	Mar '20	Dec '19	Sep '19	YOY	QOQ
Net Sales	80.69	42.64	66.03	70.88	60.54	33.28	89.24
FINAL N P T	9.8	1.25	4.76	3.43	3.12	214.1	684
Equity Share Capital	26.01	24.73	24.73	23.61	23.61	10.17	5.18
Basic EPS : FV Rs.5	1.98	0.25	0.83	0.73	0.66	200	692
Raw Materials	50.54	26.23	44.83	49.68	45.06	12.16	92.68
Traded Goods	1.6	0.44	0.88	1.05	0.19	742.11	263.64
Increase/Decrease in Stocks	-0.13	0.54	-1.12	0.56	1	-113	-124.07
Employees Cost	5.07	5.18	4.38	5.28	3.16	60.44	-2.12
Depreciation	1.54	1.54	3.35	0.85	0.9	71.11	0
Other Expenses	9.73	6.59	9.28	9.51	6.97	39.6	47.65
P/L Before Other Inc., Int., Excpt. Items & Tax	12.34	2.12	4.44	3.95	3.26	278.53	482.08
Other Income	0.59	0.3	2.61	0.68	0.8	-26.25	96.67
P/L Before Int., Excpt. Items & Tax	12.92	2.42	7.05	4.63	4.06	218.23	433.88
Interest	--	0.07	0.11	0.39	0.03
P B T	12.92	2.35	6.93	4.24	4.04	219.8	449.79
Tax	3.12	1.1	2.17	0.36	1.06	194.34	183.64
Net Profit	9.8	1.25	4.76	3.88	2.97	229.97	684
Minority Interest	--	--	--	-0.44	0.04
Share Of P/L Of Associates	--	--	--	--	0.11
Diluted EPS	1.98	0.25	0.82	0.72	0.66	200	692

 

MP  57  

PE   7.2 

VOLUMES      13300   

52 Wk L/H     20.1       60

Market Depth             

BUY 12.64 K        

SELL 31.22 K      

29%             

71%             

             

Market Cap (Rs Cr.)  ;  300.4 Cr

 

Annual Results	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	227	213	214	176	164
Net Profit	15	17	21	12	8
Other Income	2	4	4	2	1
Total Income	229	217	218	178	165
Total Expenditure	209	194	186	159	152
EBIT	19	23	32	19	13
Interest	0	0	0	0	0
Tax	4	6	11	6	5
CASH FLOWS	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Operating Activities	37	36	2	11	5
Investing Activities	-43	-37	-10	-10	0
Financing Activities	6	1	7	-2	-4
Others	0	0	0	0	0
Net Cash Flow	0	0	0	-1	0

 

HISTORICAL PRICES

3YR BEFORE         84.5

2YR                      44.8

1YR                      31.65

3MONTHS            31.65

1MONTH               39.95

1 WEEk                50

NOW                    56.45

Share Holding Pattern in (%)
Standalone	Sep-20	Jun-20	Mar-20	Feb-20
Promoters	61.2	59.2	59.2	59.09
Pledged	0	0	0	0
FII/FPI	0	0	0	0
Total DII	9.68	10.31	10.36	10.34
Fin.Insts	0	0	0	0.01
Insurance Co	0	0	0	0
MF	0.12	0.13	0.13	0.13
Others DIIs	9.56	10.18	10.23	10.2
Others	29.12	30.49	30.45	30.56
Total	100	100	100.01	99.99

 

Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	10.27	13.29	16.79	12.24	9.92
Operating Margin (%)	8.77	11.82	15.13	10.54	8.15
Net Profit Margin (%)	6.6	7.95	9.81	7.11	4.88
Return Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Return on Networth / Equity (%)	9.95	12.88	18.5	14.73	11.08
ROCE (%)	12.1	17.8	26.29	20	10.25
Return On Assets (%)	7.75	10.84	15.03	12.02	8.24

 

STRENGTHS

Promoters increasing shareholding QoQ

Growth in Net Profit with increasing Profit Margin (QoQ)

Low Debt

Improving Cash Flow from operation for last 2 years

Book Value per share Improving for last 2 years

Company with Zero Promoter Pledge

WEAKNESSES

MFs decreased their shareholding last quarter

ROE declining in the last 2 years

ROA declining in the last 2 years

Annual net profit declining for last 2 years

TWENTY SEVENTH ANNUAL REPORT 2019 – 20

EXTRACTS

 

Performance Review :

The  Standalone  Net  Revenue  from  Operations  for  the  Financial  Year  ended  March  31,  2020  was  Rs.22,770.61  Lacs,  which  grew  by  6.53%  compared  to  Rs.  21,374.21  Lacs for the previous Financial Year.

The Profit After Tax for  the  year  was  down  by  13.13%  to  Rs.  1503.73  Lacs  from  Rs.1701.17  Lacs  in  the  previous  year. 

Economic  growth during the year under review was subdued due to high fluctuation in the raw material cost on one side and stiff competition in the market due to cheap import of finished goods into India etc.

Revenue growth for the year  was  impacted  due  to  macroeconomic  slowdown  and disruption caused by COVID-19 pandemic outbreak towards the end of the Financial Year which resulted in the loss of sales for eight days.

Premier Tissues India Ltd (Wholly-owned Subsidiary) :

The  Standalone  Net  Revenue  from  operations  of  M/s.Premier  Tissues  India  Ltd,  the  Wholly-owned  Subsidiary, for the year ended 31st March, 2020 was Rs. 5353.74 Lacs  as  compared  to  Rs.  5559.55  Lacs  posted  for  the  previous year.

The profit after tax for the year ended 31st March, 2020 was  Rs.  213.55  Lacs  against  Rs.  (102.29)  posted  for  the  previous year.

The  consolidated  net  revenue  from  operations  for  the  Financial Year under review was Rs. 25800.78 Lacs and the Consolidated Profit Before Tax for the year stood at Rs.  2218.54  Lacs.  On  consolidated  basis,  the  Company  earned a Profit After Tax of Rs.1565.30 Lacs for the Financial Year 2019-20.

Capital Expenditure

As  on  31st  March  2020,  the  gross  fixed  assets  of  the company stand at Rs.15287.58 Lacs and net fixed as-sets Rs. 9427.97 Lacs. 

Capital additions during the year amounted  to  Rs  3749.53  Lacs,  which  include  addition  to Land Rs.9.66 Lacs, Building Rs.1413.36 Lacs, Plant & Machinery  and  other  assets  amounting  to  Rs.2319.86  Lakhs and Capital Work in Progress of Rs.6.65 Lacs.

Future Prospects

Rubber  thread  market  has  been  growing  for  the  past  few years, as is reflected in the sales of the company.

Since  the  year  2013,  the  company  has  expanded  the  installed  capacity  by  250%  and  the  current  capacity  stands  at  17500  T  p.a.  Since  the  company  is  planning  to  leverage  its  position  in  the  international  market,  it  has decided to put up one more line in the Tamil Nadu plant.

This will have a capacity of 2500 T and this is ex-pected to be commissioned by December 2020.

The  present  location  at  Palakkad  does  not  have  room  to   accommodate   any   further   expansion   and   hence   Rubfila had acquired large land admeasuring approximately 114 acres in Dindigul district in Tamil Nadu.

The acquired land is closer to the current location of Palakkad with sufficient resources for future requirements.

Rubfila has been exploring for new markets overseas and the responses have been encouraging. To meet the projected  demand  from  the  exports  market,  it  is  pro-posed to install a total of six lines including the current one  at  the  Tamil  Nadu  unit  and  the  company  foresees  itself to be a prominent player in the international market sooner than later.

In  addition  to  expansion  of  rubber  thread  business,  Rubfila also is optimistic about the business prospects of  its  wholly  owned  subsidiary  Premier  Tissues  India  Ltd. Premier has launched many new products recently  like  disinfectant  wipes,  sanitizing  wipes,  disinfectant  spray  etc  and  is  in  the  process  of  launching  a  series  of consumer products in the coming months.

The  hygiene products  segment  is  seeing  huge  growth  due  to  the  covid pandemic  and many products from Premier help people  stay  safe.  The  Company  is  currently  expanding  its  sales  and  distribution  net  work.    Over  the  next  few  years, Premier is expected to be a major contributor to Rubfila in topline as well bottom-line