Pioneer Embroideries hits new 52-week high on achieving more than double EBITDA; Company sees good demand of its DDPY products

EBIDTA for Q3FY21 stood at Rs11.21cr. PEL’s EBIDTA of Rs18.49cr in 9MFY21 increased by 15% over the corresponding previous period figure of Rs16.04cr.

Feb 03, 2021 09:02 IST India Infoline News Service

Pioneer Embroideries Limited (PEL), a leading manufacturer of customized Dope Dyed Polyester Yarn (DDPY) and Embroidered Fabrics & Laces (EFL), on Tuesday reported its third quarter financial performance, which saw it achieving one of its best-ever operational EBIDTA on back of a good demand of its DDPY products in domestic and exports markets.

The company stock was bullish in early deals and was trading at Rs46.85 per piece up by Rs3 or 6.84% from its previous closing of Rs43.85 per piece on the BSE. It already hit a fresh 52-week high of Rs47.45 per piece on Wednesday.

Earnings Before Interest, Depreciation, Tax and Amortisation (EBIDTA) for Q3FY21 stood at Rs11.21cr, more than double over the corresponding previous quarterly figure of Rs5.36cr. On a quarter-on-quarter basis, EBIDTA for the third quarter was also 95 % higher.

Similarly, for the 9-month period ending Dec, 2020, PEL’s EBIDTA of Rs18.49cr increased by 15% over the corresponding previous period figure of Rs16.04cr.

“Thus, the Company’s performance has emphatically overcome the ill-effects of Covid 19 pandemic and subsequent lockdown, which were more pronounced in the first two quarters of the current financial year, and PEL is now on course to close the current year in a positive growth territory,” company said in a regulatory filing on Tuesday.

Sales for the third quarter stood at Rs68.86cr, as against Rs57.96cr in the corresponding previous quarter, and Rs52.37cr in the immediate previous quarter. The profit before tax during the same period stood at Rs8.01cr, more than double the figure of Rs3.93cr in the corresponding previous quarter, and over three times the reported profit before tax of Rs2.44cr in the immediate previous quarter.

For the 9-month period ending Dec, 2020, PEL’s sales stood at Rs14.562cr, as against sales of Rs18.631cr in the corresponding previous period. The profit before tax during the same period stood at Rs8.78cr, 32% higher than the figure of Rs6.67cr in the corresponding previous period. The profitability was higher also because of almost 25% reduction in the interest costs during the reporting period, brought about by reduction in borrowings and cost of capital.
“The improved performance in the current quarter and 9-month period ending Dec 2020 is largely attributable to the DDPY business, which accounts for almost 90% of overall sales of the company. PEL’s DDPY products, which find use in furnishings, upholstery, carpets, etc., witnessed a surge in demand in both domestic and exports markets.

The company recorded exports of Rs33.22cr during the 9-month period, primarily to countries like Belgium, USA, Turkey, Egypt etc as against Rs35.40cr for the entire previous financial year. Incidentally, PEL’s DDPY unit at Himachal Pradesh, and all its major products, are also certified for Oeko Tex standards to certify use of safe chemicals/dyes in the entire manufacturing process of making dyed yarns,” company said.

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