EPL Limited — Investor Meet, 17-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance:** EPL Limited reported a modest revenue growth of 4%, with standout performance in Europe (8.7%) and the Americas (7.3%), although AMESA faced a slowdown at 1% and EAP revenue declined by 1%. EBITDA increased by 12.4%, yielding an EBITDA margin of 20.3%, up 152 basis points year-on-year. The adjusted profit after tax (PAT) surged by 34% year-over-year, and ROCE improved to 16.9%.

2. **Future Outlook and Growth Drivers:** Management remains optimistic about maintaining double-digit revenue growth driven by product demand and market expansion. A significant initiative includes a new Greenfield expansion in Thailand aimed at capturing the Beauty & Cosmetics market, with production slated to begin in H2 FY '26.

3. **Order Book and Operational Updates:** The order book reflects positive business momentum, particularly in Brazil and Beauty & Cosmetics segments. New business development efforts are being ramped up in exports from India and China to enhance regional performance.

4. **Analyst Q&A Insights:** Analysts raised concerns over revenue projections in India amid a backdrop of economic softness. Management reassured that underlying business momentum is strong, with expected improvements in Q4. Questions on margins revealed a sequential decline in India, attributed to cost pressures, but management forecasted a recovery in margins with ongoing corrective actions. Analysts also queried about the Thailand expansion’s merits; management emphasized agility in servicing local demand.

5. **Market or Regulatory Updates:** No significant market or regulatory updates were disclosed during the call, but macroeconomic challenges in key regions were acknowledged.

6. **Strategic Focus Areas:** The focus on sustainable product offerings highlights EPL’s commitment to innovation and environmental responsibility. The mix of sustainable tubes increased to 31%, showcasing a clear directional shift in product strategy.

7. **Investor Insight:** The combination of strong EBITDA growth, improving margins, and strategic investments positions EPL favorably for retail investors. Considering these promising indicators, a beneficial position is suggested. Future growth potential driven by market strategies and operational improvements indicates a positive trajectory for EPL.