Pioneer Embroideries Limited (PEL), one of the key players in the Specialized Polyester Filament Yarn (SPFY) and Embroidery & Laces in India on Monday has reported a mixed set of numbers for its Q3 & 9M of FY22.
Key Financial & Operational Highlights for the 9M FY22:
Total Income for 9MFY22 increased by 49% to Rs2,189 mn. While SPFY business contributed Rs1,908 mn, with a growth of 46% yoy, the Embroidery & Laces business contributed Rs280 mn, clocking an increase of 68% yoy.
For 9MFY22, the Domestic business of SPFY grew by 69% to Rs1,661 mn and accounted for about 87% of the sales, as the share of Exports came down from 23% to 13% on a comparative basis. Despite weaker margins and higher tax outgo in the current quarter, PEL’s EBIDTA was 18% higher, and PAT was 12% higher over the corresponding previous 9M period.
Finance cost for the 9M FY22 was reduced to Rs21 mn from Rs35 mn yoy.
Key Financial & Operational Highlights for the Q3 FY22:
Total Income for Q3 FY22, at about Rs760 mn, remained unchanged over Q2 FY22. While SPFY business contributed Rs629 mn (Q2: Rs663 mn), Embroidery & Laces business contributed Rs131 mn (Q2: Rs102 mn). While overall exports remained unchanged at about Rs102 mn, the share of SPFY in overall exports was lower as compared to Q2 FY22.
The EBITDA for Q3 FY22 was at Rs69 mn (Q2: Rs78 mn), as margins came down from 10.2% to 9.1% during the quarter under reporting. As a result, Profit Before Tax for Q3 FY22 was lower by about 21% at Rs41 mn (Q2: Rs51 mn).
The impact on margins in Q3 FY22 was primarily on account of higher raw material prices in the dominant SPFY business of the Company. The average crude price was around US$ 80, mainly following the geopolitical developments such as the Russian-Ukraine tensions, and this led to an increase in the raw material cost in Q3 FY22.
SPFY exports also experienced a slowdown in the current quarter, as the Covid resurgence in overseas markets affected demand. Though the domestic demand in SPFY did help in essentially maintaining turnover levels, the margins remained lower due to higher raw material and logistics costs.
At around 11:06 AM, Pioneer Embroideries was trading at Rs57.35 per share down by Rs5.55 or 8.82% on Sensex.
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