Pioneer Embroideries Q4 PAT improves five times to Rs8cr; Stock trades higher

FY21 PAT up 137% yoy, the company board declares dividend of Rs0.25 per share.

May 20, 2021 09:05 IST India Infoline News Service

Pioneer Embroideries Limited (PEL), one of the key players in the Specialized Polyester Filament Yarn (SPFY) and Embroidery & Laces in India, reported a strong set of numbers for Q4FY21.

The company recovers from pandemic-affected loss of first quarter, with an impressive Q4FY21. PAT (before deferred tax) improved 5 times, to Rs8cr in Q4FY21, over Rs1.6cr in the corresponding period last year.

Total Income for Q4FY21 at Rs80.6cr, 57% yoy growth from Rs51.5cr in Q4FY20. EBITDA for Q4 FY21 at 11.1cr, 126% yoy growth from Rs4.9cr in Q4FY20. EPS (diluted) for Q4FY21 at Rs4.09, 539% yoy growth from Rs0.64 in Q4FY20.

Total Income for full year FY21 declined by 5% to Rs227.8cr in from Rs239.5cr in FY20, while overall exports of the company increased by 24% to touch Rs44.4cr. Yearly PAT increased 137% yoy to Rs19.7cr compared to Rs8.3cr in FY20.

The EBITDA for the full year FY21 was at Rs29.4cr (at margin of 12.9 %), substantial increase of 41% over the previous year figure of Rs20.9cr (at margin of 8.7%). The improvement was primarily driven by strong performance of its SPFY business, where PEL has positioned itself as a niche player.

Secured borrowings fell to its lowest-ever level in recent years, to Rs29.8cr, including Rs11.6cr of working capital funds, which helped the company to reduce its financial cost by 27% to Rs4.5cr.

Company generated one of its highest-ever yearly operational cash profit, of about Rs25cr, up from Rs17cr in the previous year. PEL has proposed a dividend (Rs0.25 per share) to its shareholders, after a gap of several years.

“Like all our peers, we also were hit by the pandemic at the beginning of FY21, but we quickly took steps to gear ourselves to take up the challenge. The impressive growth in profitability came as a result of much-improved operating performance and lower financial cost. We are confident that this performance will be sustained in the times to come,” Harshvardhan Bassi, Managing Director, Pioneer Embroideries Limited, said.

During early trade, Pioneer Embroideries was trading at Rs57 per piece up by Rs1.05 or 1.88% from its previous closing of Rs55.95 per piece on the BSE.

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