Consolidated net sales (including other operating income) of L G Balakrishnan& Bros for the quarter ended March 2021 has increased 40% to Rs 499.08 crore. Operating profit margin has jumped from 9.6% to 17.8%, leading to 160% rise in operating profit to Rs 88.71 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 45.18% to 46.79%. Employee cost decreased from 17.82% to 13.54%. Other expenses fell from 27.46% to 22.89%. Other income rose 66% to Rs 3.16 crore. Provision for interest fell 38% to Rs 1.96 crore. Provision for depreciation fell % to 0.29Rs 20.75 crore. Profit before tax grew 473% to Rs 69.16 crore. Share of profit/loss were nil in both the periods. Extraordinary income were increased by 38% to Rs 8.47 crore. Provision for tax was expense of Rs 19.61 crore, compared to Rs 5.49 crore. Effective tax rate was 25.26% compared to 30.16%. Thus PAT was up 357% to Rs 58.02 crore. Eventually net profit attributable to owners of the company increased 347% to Rs 57.99 crore.
- Sales of Metal Forming segment has gone up 20% to Rs 98.51 crore (accounting for 19.74% of total sales). Sales of Transmission segment has gone up 46% to Rs 400.57 crore (accounting for 80.26% of total sales).
- Profit before interest, tax and other unallocable items (PBIT) has jumped 336% to Rs 74.32 crore. PBIT of Metal Forming segment rose 190% to Rs 9.19 crore (accounting for 12.36% of total PBIT). PBIT of Transmission segment rose 369% to Rs 65.14 crore (accounting for 87.64% of total PBIT).
- PBIT margin of Metal Forming segment rose from 3.86% to 9.33%. PBIT margin of Transmission segment rose from 5.06% to 16.26%. Overall PBIT margin rose from 4.79% to 14.89%.
Yearly performance
Net sales (including other operating income) has increased 4% to Rs 1608.99 crore. Operating profit margin has jumped from 12.1% to 15.7%, leading to 36% rise in operating profit to Rs 252.89 crore. Other income rose 90% to Rs 6.97 crore. Provision for interest fell 34% to Rs 10.04 crore. Provision for depreciation rose 6% to Rs 83.32 crore. Profit before tax grew 73% to Rs 166.49 crore. Share of profit/loss were nil in both the periods. Extraordinary income were decreased by 28% to Rs 13.62 crore. Thus PBT after EO was up 57% to Rs 180.12 crore. Provision for tax was expense of Rs 47.27 crore, compared to Rs 24.72 crore. Effective tax rate was 26.24% compared to 21.31%.Minority interest increased75% to Rs -0.61 crore. Net profit attributable to owners of the company increased 46% to Rs 133.46 crore.
Sales of Metal Forming segment has gone down 13.41% to Rs 306.93 crore (accounting for 19.08% of total sales). Sales of Transmission segment has gone up 9.57% to Rs 1,302.06 crore (accounting for 80.92% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 60.86% to Rs 185.91 crore. PBIT of Metal Forming segment fell 57.48% to Rs 4.25 crore (accounting for 2.29% of total PBIT). PBIT of Transmission segment rose 72.06% to Rs 181.66 crore (accounting for 97.71% of total PBIT).
PBIT margin of Metal Forming segment fell from 2.82% to 1.38%. PBIT margin of Transmission segment rose from 8.88% to 13.95%. Overall PBIT margin rose from 7.49% to 11.55%.
Other developments
The Committee of Creditors of RSAL Steel Pvt. Ltd (RSAL), through a Letter of Intent (LOI) have declared LG Balakrishnan& Bros ltd as the successful bidder tor RSAL, under the Insolvency & Bankruptcy code 2016. The implementation of the resolution plan Is subject to the terms of the LOI and requiste approval from regulatory authorities.
The Board of Directors of the company at its meeting held on 1oth June 2021 has declared a dividend of Rs.10/- per equity share of Rs.10/- each (100% on the face value of Rs.10/- each). perlnd AS 10, the company has not accounted for proposed dividend as liability.
Equity capital stood at Rs 31.39 crore as of 31 March 2021 to Rs 31.39 crore as of 31 March 2020. Per share face Value remained same at Rs 10.00.
Promoters' stake was 43.36% as of 31 March 2021,compared to 47.38% as of 31 March 2020.
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