Shalimar Paints Q1 net loss widens to Rs19.5cr in Q1FY22; Stock ends 4% up

The company recorded revenue of Rs65.2cr in Q1FY22 rising from Rs44.5cr in Q1FY21 but lower from Rs111.7cr in Q4FY21.

Aug 17, 2021 04:08 IST India Infoline News Service

Shalimar Paints
Shalimar Paints posted a net loss of Rs19.5cr in the quarter ending June 2021 (Q1FY22) period - that widened compared to a loss of Rs10.6cr in the same quarter last year. However, Q1 loss narrowed against a loss of Rs28.6cr in the preceding quarter.

The company recorded revenue of Rs65.2cr in Q1FY22 rising from Rs44.5cr in Q1FY21 but lower from Rs111.7cr in Q4FY21.

Ashok Gupta, Managing Director, Shalimar Paints said, “It has been challenging year and company has witnessed a disruption that had a devasting impact on the Company’s performance. Despite the initial phase of reopening of the economy, the unforeseen challenges & crisis of 24 wave of COVID-19 hit the pause button again."

He added that "commodity prices too witnessed an unprecedented surge. The company has felt the impact of increasing raw material cost over the past few quarters. Also there has been some disruption in transport facilities leading to increase in freight cost. These all factors have impacted our profitability."

Further, Gupta said that "unlocks, and the big sentiment booster of vaccination rollout are expected to spur consumer spending and boost business confidence. The pandemic also brought about certain fundamental shifts in the industry. Home improvement and focus on health & hygiene are expected to remain key growth catalysts. With the uptake in the real estate sector on the back of consumers buying houses we expect volumes to pick up in the coming quarters."

"We believe we are working in the right direction for long-term sustainable growth," Gupta said.

On Sensex, Shalimar Paints finished at Rs103.50 per piece up 4.2%.

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