Indag Rubber stock soars ~2.5% post Q4FY22 numbers

27 Apr 2022 , 09:17 AM

Indag Rubber Limited, one of India’s leading tread manufacturing Company, has declared its Audited Financial Results for the Quarter and Full Year Ended March 31, 2022.

FY22 Audited Consolidated Financial Highlights

• Total Income stood at Rs173.4 crore
• EBITDA stood at Rs7.1 crore
• Profit After Tax stood at Rs2.1 crore

Key Result Highlights:

• Delta variant in the month of April & May’21 followed by Omicron in December’21 & January’22 impacted the volumes in the FY2022 and Q4 2022
• People mover segment got severely impacted due to WFH and WFA for IT & ITES and Schools and Colleges operating through online mode during the covid period
• Input cost inflation has impacted margins and raw material prices have continued to remain on high elevated levels. The Company could partially pass on the price increase to the customers due to market competition

Other Key Updates

• Recommended Final Dividend of Rs. 1.5 per equity share in addition to interim dividend of Rs 0.90 per equity share paid in November 2021, thereby giving Total Dividend of 2.4 per equity share for Financial Year 2021-2022. Face Value (FV) of one equity share is Rs.2
• The Board of Directors had approved Voluntary winding up of Sun-amp Solar India Pvt. Ltd. on 10th February 2022 and the liquidator for the same had been appointed on 28th March 2022 o The investment in Sun has been valued at fair value amounting to Rs. 474.46 lakhs resulting in an appreciation of Rs. 179.11 lakhs which has been accounted for as other comprehensive income for the quarter and year ended 31st March 2022. We will get the amount once the liquidation process gets completed

Commenting on the Result, Vijay Shrinivas, CEO Indag Rubber Limited said, “FY22 has been a challenging year for the auto industry on account of input cost inflation. Demand scenario had evolved post the second wave and we had witnessed gradual demand recovery. However, we faced certain slowdown in January 2022 because of the omicron variant. Post the third wave, we have witnessed stable demand during the months of February and March 2022.

We are pleased to inform that the Board of Directors have recommended a Final Dividend of Rs. 1.5 per share taking the total dividend to Rs. 2.4 per share for the Financial Year 2021-2022.”

At around 9:17 AM, Indag Rubber was trading at Rs78.70 per piece higher by 2.47% on the BSE.