Pioneer Embroideries' Q1FY23 PAT declined 98% y-o-y owing to higher crude prices

17 Aug 2022 , 10:31 AM

Pioneer Embroideries Limited (PEL), one of the key players in the Specialized Polyester Filament Yarn (SPFY) and Embroidery & Laces in India, announced that its performance was affected considerably in Q1FY23 owing to higher crude-linked input costs.

Company’s Income from operations for Q1FY23 jumped by 31% to Rs8,660 lakh. While SPFY business contributed Rs7,540 lakh, up by 24% yoy. The Embroidery & Laces business contributed Rs1,050 lakh to the total Income, expanding by about 107% on a yoy basis.

Even though the company managed to increase its revenue in the quarter, its profit declined severely by 98% on a y-o-y basis. PAT stood at Rs60 lakh in Q1FY23 as compared to Rs300 lakh in Q1FY22.

EBITDA for Q1FY23 stood at Rs300 lakh as compared to Rs690 lakh in Q1FY22, down by 55.90% yoy.

EBITDA margin declined by 688 bps at 3.5% in Q1FY23 as against 10.40% in the previous corresponding quarter.

PAT Margin for Q1FY23 came in at 0.1%.

The geopolitical scenario following the Russia-Ukraine War, as well as the steps taken by key Central Banks to tame inflation, has caused a slowdown in demand in international markets. This was more pronounced in the US-Europe region and in the SPFY non-apparel segment, stated company in media reports.

At around 9.56 AM, Pioneer Embroideries was trading at Rs44.55 up by Rs0.3 or 0.68% from its previous closing of Rs44.25 on the BSE. The scrip opened at Rs43.95 and touched intraday high and low of Rs45.10 and Rs43.95 respectively.