Indag Rubber logs steady performance in FY21 despite unprecedented macro-economic challenges

Board recommends final dividend of Rs. 1.50 per share (FV of Rs. 2).

May 11, 2021 10:05 IST India Infoline News Service

Indag Rubber Limited, one of India’s leading tread manufacturing Company, has declared its Audited Financial Results for the Quarter and Full Year Ended 31st March, 2021.

Key Highlights:
  • Final Dividend of Rs. 1.50 per share (FV of Rs. 2)
  • Total Revenues at Rs173.9cr
  • EBITDA at Rs20.3cr
  • Profit Before Tax at Rs16.2cr
Commenting on the Result, K. K. Kapur CEO, Indag Rubber Limited said, “We have delivered a steady performance in FY21 despite unprecedented macro-economic challenges. The spread of the COVID-19 pandemic in early March 2020 caused significant disruptions in our business operations like many others. However, post the partial lockdowns and easing of restrictions thereafter, we witnessed a sharp uptick in economic activities that limited our de-growth for the year. Profitability for the full year was impacted by certain one-off tax settlements of prior years, excluding which we have delivered a steady performance.

We have recorded 29% YoY revenue growth in Q4 FY21, albeit on a low base of last year. Margins have been impacted by input cost inflation which we will subsequently pass on to our customers. The commercial vehicle industry sales in Q4 FY21 have been strong led by robust demand for medium and heavy commercial vehicles reflecting the uptick in infrastructure, construction and manufacturing sector, and augurs well for our long terms prospects going forward.

The environment has since evolved with the onset of a new strain of Covid virus infecting certain key States across the country. As a result, we are seeing more localized, micro lockdowns and restrictions being imposed rather than a nation-wide lockdown witnessed last year. However, it is expected that the Indian Government’s initiative of world’s largest vaccination program, now open to all above 18 years, will achieve large scale immunity among the population and economic activities will be back to previous levels in due course.

We are working diligently on strengthening our value proposition to our customers and are confident of our medium to long term prospects. Keeping that in view along with our strong balance sheet, the Board of Directors have declared a final dividend of Rs 1.5/share taking the total dividend for the year to Rs 2.4/share.”

At around 10:15 AM, Indag Rubber was currently trading at Rs91.85 per piece up by Rs1.85 or 2.06% on Sensex.

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