The Company income from operation rose 18% to Rs 599.95 crore for the fourth quarter ended March 2021, on gains in sales volume. Total sales volume increased 14.9% to 12.52 lakh tonne, driven by increased demand and base effect of national lockdown for a week in March 2020 quarter.

Operating margin (OPM) improved by 40 bps to 25.4%, as fall in employee cost by 40 bps to 6.1% and other cost by 350 bps to 14.1% as a percentage to sales and net of stock adjustments were offset by gains in raw material costs by 70 bps to 17.6% and rise in power & fuel expense by 300 bps to 24.4%. As a result, the operating profit (OP) was up 19% to Rs 152.15 crore.

Other income was down 13% to Rs 14.77 crore. With 44% fall in interest cost to Rs 9.15 crore and flat depreciation cost to Rs 27.47 crore, the Company booked 30% jump in PBT to Rs 130.30 crore. With adjustment of net tax credit of Rs 9.69 crore due to reversal of net deferred tax liability as against net tax outgo of Rs 34.29 crore corresponding previous quarter, the Net Profit gained by 111% to Rs 139.99 crore.

For the financial year ended March 2021 (FY 2021), Sales of the company declined 2% to Rs 2,116.67 crore. The Company sold a volume of 44.86 lakh tonne, decrease of 4.7% y/y mainly due to nation-wide lockdown in the 1st quarter of FY2020-21 to contain the impact of COVID-19 pandemic.

OPM fell by 40 bps to 23.9%. As a result, the operating profit (OP) fell 4% to Rs 506.64 crore. Other income declined 12% to Rs 46.46 crore. With 31% fall in interest cost to Rs 50.85 crore but 2% rise in depreciation cost to Rs 111.03 crore, the Company booked 2% fall in PBT to Rs 391.22 crore. The tax outgo was down 41% to Rs 76.27 crore. The effective tax rate fell to 19.5% from 32.7% corresponding previous year. Thus, Net Profit rose by 17% to Rs 314.95 crore.

Dividend

The Board of Directors has recommended a Dividend of Rs 8/- per equity share (80%) for the Financial Year 2020-21.

The scrip hovers around Rs 252.80 (28 May 2021) on the BSE.