Apcotex Inds

Apcotex Industries is a Taloja (Maharashtra) based company is a leading producer of Performance Emulsion Polymers in India, which is used for making tyre cords, Paper/Board Coating, Carpet Backing, Construction (Concrete Modification, Water Proofing, etc.), Paints, Textile Finishing and Automotive Components. The company was earlier established as a division of Asian Paints and then in 1991, it was spun-off as a separate company.

On the financial front, the rising raw material, up 37% (YoY) left a telling effect on the bottomline. Despite a 37% increase in consolidated net sales at Rs.92 crore, the company ended the quarter with a net profit at Rs.3.56 crore, down 33%. The dent would have been higher but for the surge in other income at Rs.3 crore from Rs.63 lakh (YoY) and tax outgo at a mere Rs.12 lakh v/s Rs.2 crore. The costs dented the EBITDA too, which was down 50% at Rs.5 crore with margins more than halving from 14.74% to 5.41%.

Equity is at Rs.10.41 crore (face value Rs.5/share), with annualized EPS of Rs.10. Borrowings are very small at Rs.32 crore and cash is at Rs.25 crore. It is sitting on a huge reserves of Rs.177 crore.