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Results
11-Feb-22
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Analysis
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Singer India
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Flat sales, OPM down
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Singer
India has recorded flat net sales (including other operating income) at Rs
127.21 crore in the quarter ended December 2021 (Q3FY2022). Operating profit
margin has declined from 5.61% to 2.92%, leading to 47.90% decline in operating
profit to Rs 3.72 crore.
Raw
material cost as a % of total sales (net of stock adjustments) increased from
1.91% to 2.59%. Purchase of finished goods cost fell from 76.57% to 73.51%. Employee
cost increased from 4.57% to 6.03%. Other expenses rose from 11.86% to 14.71%.
Other
income fell 45.24% to Rs 0.46 crore. PBIDT fell 47.62% to Rs 4.18 crore. Provision
for interest jumped 575% to Rs 0.27 crore.
PBDT
fell 50.76% to Rs 3.91 crore. Provision for depreciation declined 26.39% to Rs
0.53 crore.
Profit
before tax dipped 53.19% to Rs 3.38 crore. Provision for tax was expense of Rs
0.75 crore, compared to Rs 3.03 crore. Effective tax rate was 22.19% compared
to 41.97%.
Profit
after tax declined 37.23% to Rs 2.63 crore in Q3FY2022.
Promoters
stake was 57.65% as of 31 December 2021, compared to 58.99% as of 31 December
2020.
While the sewing machines
business revenue registered a growth of 6 % in Q3 FY22 over the prior year, the
home appliances business revenue remained lower due to the delayed Winter
Season and not very impressive festival demand this year. Further the scare of
Omicron virus also led to postponement of buying in both the product segments.
Higher Commodity prices
continued to keep margins under pressure especially in the home appliances.
Though the Company has taken suitable price increase in mid of November 2021 to
offset the cost increases, the company expects these pressures to continue for
some more time.
The company however
continued to improve its working capital cycle by constant monitoring of its
inventories and receivables. Inventory overall came down despite the stuck
inventory of winter related items which would remain for some time until the
beginning of next season.
Rajeev Bajaj, Managing
Director, Singer India commented that, “In this year quarter though the
Company’s revenue remained at the prior year levels, profitability was impacted
due to increase in commodity prices keeping margins under pressure and the
resumption of necessary expenses including the Advertising and promotion which
were kept lower in the prior year due to Covid uncertainty.”
“The immediate focus is to
increase the turnover levels and improve the profitability amongst the tight
competition that exists. Our strategies to grow our both businesses are intact
and are being implemented vigorously. We remain thankful to all employees and
all other associates who stood with us during this difficult period.”
Financial performance 9MFY2022
Net
sales (including other operating income) of Singer India has increased 15.38%
to Rs 328.20 crore in 9MFY2022. Operating profit margin has declined from 4.08%
to 2%, leading to 43.28% decline in operating profit to Rs 6.58 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
2.14% to 2.92%. Purchase of finished goods cost rose from 73.11% to 73.95%. Employee
cost increased from 6.16% to 6.38%. Other expenses rose from 14.29% to 14.68%.
Other
income increased 50.27% to Rs 2.78 crore. PBIDT fell 30.41% to Rs 9.36 crore. Provision
for interest declined 51.56% to Rs 0.62 crore.
PBDT
fell 28.18% to Rs 8.74 crore. Provision for depreciation declined 21.68% to Rs
1.77 crore.
Profit before tax eased
29.67% to Rs 6.97 crore. Provision for tax was expense of Rs 1.67 crore,
compared to Rs 4.21 crore. Effective tax rate was 23.96% compared to 42.48%. Profit
after tax fell 7.02% to Rs 5.30 crore.
Singer India:
Standalone Results
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2112 (3)
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2012 (3)
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Var %
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2112 (9)
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2012 (9)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Sales
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127.21
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127.32
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0
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328.20
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284.46
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15
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414.53
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451.17
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-8
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OPM (%)
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2.92
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5.61
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2.00
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4.08
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4.36
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3.30
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OP
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3.72
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7.14
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-48
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6.58
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11.60
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-43
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18.06
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14.87
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21
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Other inc.
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0.46
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0.84
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-45
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2.78
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1.85
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50
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2.77
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3.58
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-23
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PBIDT
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4.18
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7.98
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-48
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9.36
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13.45
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-30
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20.83
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18.45
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13
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Interest
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0.27
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0.04
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575
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0.62
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1.28
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-52
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1.64
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2.22
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-26
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PBDT
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3.91
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7.94
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-51
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8.74
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12.17
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-28
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19.19
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16.23
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18
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Dep.
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0.53
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0.72
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-26
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1.77
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2.26
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-22
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3.10
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3.78
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-18
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PBT
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3.38
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7.22
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-53
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6.97
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9.91
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-30
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16.09
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12.45
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29
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Tax
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0.75
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3.03
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-75
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1.67
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4.21
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-60
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5.47
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4.33
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26
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PAT
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2.63
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4.19
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-37
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5.30
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5.70
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-7
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10.62
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8.12
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31
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EPS (Rs) *
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2.0
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3.1
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1.3
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1.4
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2.0
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1.5
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* Annualized On
current Equity of Rs 10.74 crore of face value of Rs 2 each, Figures in Rs
crore, Source: Capitaline Corporate Database
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