As a result of the nationwide lockdown imposed by the government of India, the operations of the company were temporarily disrupted at its various manufacturing facilities impacting production and dispatches from the second half of March 2020. The company had resumed operations since last week of April 2020 / first week of May 2020 in compliance with the guidelines issued by respective authorities and is continuing to take adequate precautions for safety and wellbeing of its employees. 

OPM rose570 basis points to 18.6% which saw OP rose48% to Rs 255.85 crore.Other income was Rs 8 lakh compared to Rs 54 lakh. Interest cost decreased 65% to Rs 2.49 crore. As depreciation grew 1% to Rs 52.3 crore, PBT rose76% to Rs 201.14 crore. Tax provision was Rs 52.7 crore compared to tax credit of Rs 14.04 crore. PAT rose15% to Rs 148.44 crore.  

Profit in JV increased 141% to Rs 26.51 crore compared to Rs 10.99 crore in Q2FY20. Finally net profit rose25% to Rs 174.95crore.  

The overall turnover of value added products increased to Rs. 533crore during the current quarter as compared to Rs. 491crore in the corresponding period of previous year achieving growth of 9%. 

Total net borrowing of the company stands at surplus of Rs. 215 crore as on 30th September, 2020 as against net borrowings of Rs. 217 crore as on 31st March, 2020. 

Average net borrowing level during the current half year remained at surplus of Rs. 4 crore against borrowing of Rs. 205 crore in corresponding period of previous year. 

Average cost of borrowings as on 30th September,2020 decreased to 5.89 % p.a. as against 8.35% p.a. as on 31st March, 2020. 

The board of directors has considered the payment of interim dividend for the financial year 2020-21 @ 250 % i.e. Rs. 5 per share of Rs. 2 each and will be paid to the shareholders on the shares held as on the record date i.e. 6th November, 2020

H1FY 2021 consolidated results  

In H1FY 2021, sales fell10% to Rs 2428.67 crore.The company sold 186287tonne of plastic goods during H1FY21 against sales of 206928tonne in the previous year achieving volume and product value degrowth of about 10% and 12% respectively. The overall turnover of value added products increase to Rs. 2070 crore as compared to Rs. 1944 crore in the previous year achieving growth of 6%. 

OPM rose 250 basis points to 15.4% which saw OP rose 10% to Rs 372.95 crore. 

Other income fell 37% to Rs 36lakh and interest cost remained flat at Rs 10.28 crore. As depreciation grew 2% to Rs 103.07 crore, PBT rose13% to Rs 259.96 crore.  

As tax rose160% to Rs 67.34 crore, PAT fell 5% to Rs 192.62 crore.  

Profit in JV fell3% to Rs 22.86 crore. Finally net profit fell5% to Rs 215.48 crore.

The negative impact of pandemic on the business has started withering down. After July, the intermittent lockdowns were mostly not extended in many parts of the country and opening up of economy has progressed. This has broadened business prospects of the company since August in all its segments. 

By judicious product mix and cost control, the company was able to achieve significant increase in its' profit, in the second quarter. In spite of weak working of the first quarter, the company could attain higher profit in the First half of the year compared to corresponding period of previous year. 

The harvesting of Kharif crops are moving briskly. The crop output is expected to be better than last year. With most of the water dams are close to full capacity, it is expected that Rabi crop sowing may be in a larger acerage as compared to last year. With higher MSP declared by Government and various other supports provided, the rural area economy and Tier III and IV Towns economy is expected to do better than last year. 

With the return of migrant workers on most of the construction sites, supported with lower rate of interest and lower rates of stamp duty in some States, along with drop in prices of residential homes, the demand of new homes has picked pace throughout the Country. Consequently, the Company's Pipe System for Housing is also seeing better demand from September onwards. 

Packaging segment is witnessing good demand supported by many new applications/SKUs targeting agriculture sector and customized requirements. Material Handling Products are being extensively used for logistic solutions, Fruits & Vegetable and Fisheries segments along with revival of demand for Industrial Applications. 

Raw material prices, except PVC resin prices, remain range bound. PVC prices, due to tight availability are still making an upward march. It is expected that with the starting of plants in USA and other countries coupled with lower winter demand for housing in USA, Europe, China and other parts of the World, prices may start softening from January 2021 onwards. 

The Company's investment plans are going as envisaged. It is expected that Orissa land deal may fructify by November. Company is exploring to put up new plants in other States, for which land negotiations are progressing in Assam and Tamilnadu. 

The stock trades at Rs 1462.