• Sales down by 15% to Rs 916.14 crore. With volume down by 11% for the quarter, the lower sales is due to lower volume as well as realisation.
• Downside in revenue was largely due to mid teen fall in revenue of both polymer products and composite products business of the company. While the segment revenue of polymer was down by 15% to Rs 665.42 crore (or 73% of sales) that of composite products was down by 17% to Rs 250.72 crore (or 27% of sales).
• EBIT for the period was down by 38% to Rs 81.07 crore as both polymer products as well as composite products register fall in profits. Segment profit of polymer products was down by 38% (to Rs 58.17 crore) hurt by 320 bps contraction in segment margin to 8.7% as well as lower sales. Similarly the segment profit of composite products was down by 39% to Rs 22.90 crore as its segment margin was down by 350 bps to 9.1% and lower sales.
• The PBT was down by 47% to Rs56.09 crore. Taxation stood lower by 48% to Rs 15.80 crore and the effective tax rate was 28.2% compared to 28.5% in corresponding previous period. Thus the PAT was down by 47% to Rs 40.29 crore. With MI down by 7% to Rs 1.99 crore, the net profit (After MI) was down by 48% to Rs 38.30 crore.

Yearly performance

Consolidated sales was flat at RS 3578.03 crore. But the operating profit was down by 5% to Rs 489.89 crore with OPM erode by 80 bps to 13.9%. The PBT was down by 16% to Rs 236.75 crore hit by lower other income, higher interest and depreciation. With taxation stand lower by 16% to Rs 61.74 crore, the PAT was down by 16% to Rs 175.01 crore. With MI up by 2% to Rs 5.89 crore, the NP (After MI) was down by 17% to Rs 169.12 crore.

While the sales of both Polymer Products and Composite stay flat at Rs 2536.53 crore and RS 1041.51 crore respectively, their segment profit was down by 9% to Rs 242.20 crore and RS 100.47 crore respectively hit by lower segment margin.

The share of value added products stood at 19.1% in FY20 compared to 18.6% in corresponding previous period.

Other developments

Incurred a total capex of Rs 145.4 crore in FY20 of which about Rs 94.4 crore is toward established Products for capacity expansion, re-engineering andautomation;Rs 51 crore for Value Added Products.

Capacity utilization for FY20 stood at 80% overall with 82% for India operations and 75% for overseas.

Pipes(PE Pipes) has an healthy Order Book of Rs 325 crore.

Industrial Packaging: Greenfield expansion at Iowa, USA is under progress and to be completed by Q2-FY21. Brownfield expansion in India and overseas locations continues for future growth and leveraging of existing infrastructures.

Pursuant to the taxation law (Amendment) Ordinance 2019 issued by Ministry of Law and Justice (Legislative Department) on Sep 20, 2019, which is effective from April 1, 2019, domestic companies have the option to pay corporate income tax rate at 22% plus applicable surcharge and cess (new tax rate) subject to certain conditions. The company has made an assessment of the impact of the ordinance and decided to continue with the existing tax structure until utilisation of accumulated minimum alternate tax (MAT) credit.

Recommended Final Dividend @ Rs. 0.95 per Equity Shares of Face Value of Rs. 1.00/- each being 95%, for the Financial Year 2019-20, subject to approval of Shareholders at the ensuing Annual General Meeting.