Shalimar Paints gains 1% despite a lacklustre Q4 financial earnings

EBITDA stood at Rs3.6cr for FY21 as against loss of Rs33.5cr in FY20.

Jun 29, 2021 09:06 IST India Infoline News Service

Shalimar Paints
Shalimar Paints Limited engaged in the manufacturing and marketing of decorative paints and industrial coatings has declared its Audited financial statements for the Quarter and Full year ended for the financial year 2021.

Key highlights of FY21 results (On consolidated basis):
  • Revenue at Rs326cr, marginal de-growth of 5% on yoy basis. Revenues was back on track post relaxation of Covid-19 restrictions
  • However, the performance was impacted in HIFY21 due to lockdown restrictions
  • Revenue grew by 27% in H2FY21 compared to H2FY20 and by 68% compared to H1FY21
  • Company was able to turn EBITDA postive for FY21 on the back of its 360-degree strategy of controlling costs and improving efficiency
  • EBITDA stood at Rs3.6cr for FY21 as against loss of Rs33.5cr in FY20
  • Operating cost (Employee cost + Other Expenditure) was reduced by more than 30% leading to improvement in the operating profitability
  • Other Expenditure as % to Revenue came down to 19.2% in FY21 from 28.1% in FY20 ie. to Rs62.5cr in FY21 from Rs96.7cr in FYZ0
  • Working capital days reduced to 51 in FY21 from 61 in FY20
Commenting on the Results, Ashok Gupta, Managing Director, Shalimar Paints said, "It was a challenging year, despite that the company continued its focus towards operational efficiency along with cost rationalization strategy which resulted into operating profitability and positive operating cashflow.

The Company ended FY21 on a very positive note by turning EBITDA positive of Rs4cr with healthy Operating cashflow of Rs16cr 360-degree business strategy has started yielding results.

Revival & opening of economy post pandemic led to normalcy in business and we have observed a V-shaped recovery and was able to bounce-back immediately.

For FY21, company reported marginal dip in Revenue of 5% to Rs326cr, this was due to loss of revenue in H1FY21 to COVID-19 restrictions.

To continue to perform even in these challenging times, I would like to sincerely thank all the employees for their support and their ability to navigate through these uncertain times. It was because of their efforts and dedication the Company has bounce back much stronger.

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

At around 9:50 AM, Shalimar Paints was trading at Rs109.95 per piece up by Rs0.9 or 0.83% on Sensex.

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