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Plastic products firm Tarsons Products announced Q3FY23 results:

• Q3FY23 & 9MFY23:
  • Revenues for Q3FY23 & 9MFY23 were lower by 13% & 7% respectively, dip in revenues was on account of:
    • Temporary slowdown in the life science industry, since the industry is yet recovering from the after-effects of the covid pandemic.
    • Loss in revenues related to covid pandemic as compared to the previous financial year, however, our conventional business revenues have shown resilience & are expected to pick up.
  • EBITDA margins for the Q3FY23 stood at 43.5% & for 9MFY23 stood at 45%,dip in the margins were on account of:
    • Lower absorption of fixed cost on account of decline in revenues
    • Higher spends on sales promotion, marketing & travelling expenses to fuel future growth in domestic & export markets.
  • Update on our upcoming Capex (New manufacturing capacities at Panchla, West Bengal):
    • Capex plan is as per the schedule and we do not see any major deviation from our timelines.
    • We remain optimistic about the industry growth prospects, with the addition of new product categories & capacity expansion we envisage reaching greater heights.
    • Manufacturing at the new facilities will begin in phases starting from Q2FY24.

Commenting on the Q3 FY23 performance of the company Mr. Rohan Sehgal, Whole Time Director for Tarsons, said: “Our revenues for Q3FY23 were lower by 13% on a YoY basis, this decline was majorly attributable to external macro-economic factors & overall slow down in the life science industry. Impact on revenues was also on account of high base of covid related revenues in FY22, which was replaced by our conventional business to a significant extent in the current financial year.

Due to political uncertainty and growing recessionary trends, our export revenues declined by 17% during the quarter and remained flat for 9MFY23. These are difficult times for not only our industry, but for the entire world, and we are standing firm and attempting to sail through these challenging times.

Our capacity expansion is proceeding smoothly, and commissioning is scheduled for Q2FY24. These capabilities would propel the company's next phase of expansion, which would include the addition of high-value products, which would further strengthen the "Tarsons" brand.

We believe that these market conditions are temporary in nature and in the long term we see the plastic labware market continue to grow both domestically and internationally and so will Tarsons.”

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