Singer India Q4 PAT soars five-fold to Rs4.9cr; Stock under pressure

The revenue for Q4FY21 increased by 28% to Rs130cr due to a surge in demand for sewing machines.

Jun 15, 2021 10:06 IST India Infoline News Service

Quarterly Results
Singer India Limited reported that the business recovered post the lockdown situation witnessed in April / May 2020. The revenue for the fourth quarter of FY21 increased by 28% to Rs130cr over the prior year Rs101.6cr in Q4FY20. For FY21 revenue from operations declined to Rs414.53cr compared to 451.17cr in FY20.

Q4 Profit after tax at Rs4.92cr soars by 392% over the prior year Rs1cr in Q4FY20. FY21 PAT at Rs10.62cr compared to Rs12.45cr in FY20. EBITDA for the FY21 at Rs20.8cr is the highest for over a decade, the company said. The company continues to operate with zero borrowings at the end of Q4.

“There was a surge in demand for sewing machines during the Covid period which produced a growth of 35% in Q4 over the prior year. A 17% growth rate was achieved in home appliance segment during the same period.

Despite the Covid related revenue decline in Q1, the strong recovery and consistent growth in business during Q2 to Q4 resulted in annual FY 2020-21 revenue being at 92% of the prior year. The contribution of sewing machines business remained at 64% of the total turnover of the Company.

The continued focus on improving operating cycles, cost management and cash flows resulted in the improved profitability, despite the lower turnover,” company said.

The Board recommends a final dividend of Rs0.50 per equity share of Rs2 each, which is the same as the interim dividend paid earlier in the year. Once approved, the total dividend for the financial year will be 50% of the paid up capital of the company.

Rajeev Bajaj, Managing Director, Singer India Limited commented that: “The growth momentum in the post Covid recovery period in FY 2020-21 has been satisfactory, despite various challenges including the steep increase in raw material prices and supply related issues.

While we will see headwinds again in FY 2021-22 due to the emerged Second Wave of Covid 19, we do not foresee its impact to last for long. At this crucial time, our priority is to increase our operating efficiencies and reduce the costs. We are also revamping our product categories to increase our market share. We are sincerely grateful to all employees and all other associates who stood with us during this unusual and testing Covid period.”

At around 10.18 am, Singer India Ltd was trading at Rs53.50 per piece down by Rs0.9 or 1.65% from its previous closing of Rs54.40 per piece on the BSE.

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