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Earnings Call Transcript

Knack Packaging Earnings Call Transcript: Key Takeaways

Knack Packaging achieved record revenue but faced severe margin compression due to skyrocketing raw material costs.

Highlights
Revenue growth₹294.76 Cr, +52.5% YoY; record quarterly revenue driven by exports.
MarginsEBITDA margin fell to 16.85% from 19.25% due to cost spikes.
Order bookNew ₹150 Cr/year contract renewal with a major international corporation.
Demand visibilityStrong demand in pet food, rice, and agro segments globally.
Management confidenceConfident in recovery despite clear pressure from volatile polymer input prices.

Growth

Consolidated revenue rose 52.5% YoY, driven by higher export volumes and increased global wallet share.

Outlook

Expect margin recovery in Q3 FY27; new Mexico JV targeting break-even by Q4 FY27.

Risks

Raw material costs surged 50% in weeks; significant lag in passing costs to customers.

Last quarter's promises, checked

Delivered

  • Sustain Q1 sales ₹264.77Cr → ₹294.76Cr record (= BEAT)
  • Add countries: 74 → 75 (= BEAT)

Partly delivered

  • 70,000 MT by Oct 2027 → 72,000 MT by Oct 2027, not yet due (= PARTIAL)

Missed

  • Same-day price pass-through, margin held: EBITDA 22.35% → 16.85% (= MISS)
  • Maintain Q1 PAT ₹30.53Cr → ₹25.02Cr (= MISS)
  • Pinch-bottom 22.5-23% → 21% of sales (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: KNACK. Summary written with AI assistance from the document.

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Knack Packaging Ltd: key numbers

Share price
₹197.17
Market cap
₹2,413 Cr
Revenue (annual)
₹823.4 Cr
Net profit (annual)
₹92.72 Cr
Promoter holding
70.59%
FII holding
1.28%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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