Indo-National consolidated revenues grow 11.1% yoy to Rs172 crore in Q3FY22

22 Feb 2022 , 09:15 AM

Indo-National Ltd. (INL) is a leading consumer goods Company (Nippo) has announced its financial results for the quarter and nine months ended December 31, 2021.

The company has a portfolio comprising dry-cell batteries, Flashlights, LED lights, Mosquito bats, DORCO Blades, and electrical accessories. Through its subsidiaries and step-down joint ventures, it has also emerged as a global supplier of composites to the railway, aerospace, and defense industries. 

Consolidated revenue from operations grew 11.1% YoY to Rs172 crore in Q3FY22 from 154.6 crore in Q3FY21. EBITDA de-grew 59.9% yoy to Rs8 crore from Rs19.8 crore.

Profit Before Tax also declined 46.4% yoy to Rs10.1 crore from Rs18.8 crore.

Profit After Tax was down 39.3% at Rs6.8 crore in Q3FY22 from Rs11.2 crore in Q3FY21. EPS diluted at Rs3.81 in Q3FY22 compared to Rs27.39 in Q3FY21.

INL’s subsidiary Kineco Ltd. records positive business momentum, records 50% yoy revenue growth in Q3FY22.

During early trade on Tuesday, Indo National Ltd was trading at Rs418.95 per piece down by Rs9.3 or 2.17% from its previous closing of Rs428.25 per piece on the BSE.

Commenting on the performance, Aditya Reddy, Jt. Managing Director said: “The third quarter was a challenging quarter for the Company due to subdued market demand for some of our products and higher costs. The performance of our batteries products was impacted due to reduced usage of Covid related gadgets during the quarter. However, I am happy to share that our non-battery categories like LED, Electrical Accessories and Mosquito Bats registered an improved revenue and margin performance.

In addition to the tempered consumer sentiments, the unprecedented increase in input costs which could not be absorbed, impacted our battery performance and subsequently our overall performance. Considering the improved pandemic scenario at a global level, the commodity prices and supply chain constraints should ease out and consequently assist in softening the input prices for batteries. Additionally, the recent price increase should assist us in registering a better performance from the battery category, going ahead.

Considering our growth plans for our B2C business, we have recently revised our Vision — Mission – Culture -Values; which we are confident would take us in a new direction for our next level of growth.”

Key Developments / Operational Highlights of Q3FY22

• During Q3FY22, CRISIL reaffirmed its rating assigned to the long-term bank facilities of Indo National Ltd. to CRISIL A / stable. The rating for short-term bank facilities of the Company has been assigned at CRISIL A1.
• Following the launch of DORCO razors and razor blades in India in FY21, the Company had been consistently taking efforts to expand the availability of DORCO products into newer regions. During the quarter gone by, the Company fulfilled its objective of having a comprehensive pan India presence for DORCO products.
• In June 2020, INL had appointed Indian cricketer Rohit Sharma to endorse its portfolio of products comprising of Dry-Cell Batteries, Torches and Mosquito Bats. In addition to these products, Rohit Sharma has now been engaged to endorse LED and Electrical Accessories as well.
• Considering the improved performance of Kineco and the comfort derived by the bankers, Corporate Guarantee of Rs40.4 crore given to HDFC against Kineco’s limits has been reduced to Rs20.4 crore in Q4.
• Kineco’s Defence business has been a direct beneficiary of favourable policies by Ministry of Defence, Govt of India. Recent announcements and incremental policy directives such as additions to import substitution list will have a positive impact on the business enhancing the prospects of commercializing several of the development projects completed in the recent past.