• Downside in sales was largely due to fall in revenue of both building products (BP) and synthetic blended yarn (SBY) segments. The BP sales was down by 8% to Rs 271.89 crore hit by 19% fall in volume to 226492 MT. The ATUM solar panels volume was up by 235% to 807 KW. However the SBY sales was down by 77% to Rs 13.30 crore, with its volume down by 75% to 737 MT.
• EBIT was up by 17% to Rs 54.83 crore driven largely by higher profit from BP segment. Segment profit of BP despite lower sales was up by 51% to Rs 61.27 crore, as its segment margin expand by 880 bps to 22.5%. Segment profit of SBY was a loss of Rs 6.44 crore compared to a profit of Rs 6.23 crore in the corresponding previous period. EBIT loss of SBY was largely due to COVID lockdown and shutting of Mumbai market.

Yearly Performance

Sales for the fiscal ended March 2020 was down by 8% to Rs 1050.38 crore with sales of building products down by 9% to Rs 834.61 crore and that of yarns down by 2% to Rs 215.78 crore. With operating profit margin contracting by 220 bps to 10.4%, the operating profit was down by 24% to Rs 108.87 crore. The overall EBIT was down by 31% to Rs 99.29 crore with the segment profit of Building Products decline by sharp 42% to Rs 71.18 crore hit by both lower sales and 480 bps contraction in segment margin to 8.5%. However despite lower sales, gained by 290 bps expansion in segment margin the segment profit of yarns was up by 25% to Rs 28.11 crore. The PBT was eventually lower by 43% to Rs 57.12 crore. After accounting for lower taxation, which was down by 76% to Rs 7.82 crore, the PAT was down by 27% to Rs 49.30 crore.

Other developments& Management comment

Cement Asbestos market share stays at 18% in FY20. Boards and Panels market share at 32%.

Spinning business of the company being a unique technology will bounce back once Mumbai and Bhilwara lockdowns stops.