Other Income increased 16% to Rs 8.69 crore in Q2FY21 from Rs 7.49 lakh in Q2FY20 while interest cost fell 15% to Rs 5.2 crore and depreciation rose 5% to Rs 54.07 crore. As a result PBT was up 32% to Rs 66.3 crore. Effective rate of tax rose 1850 bps to 25.1% leading a 6% increase in PAT to Rs 49.69 crore. Further considering share of profit or loss of JV and minority interest net profit rose 1% to Rs 49.52 crore.

The unorganized sector of the industry in which the company operates is witnessing a structural damage, the major reasons being the long lasting impact of events such as demonetization, GST and Covid 19 pandemic. Apart from this availability of quality products at reasonable prices and supply assurance alongwith seamless service will play a vital role for the growth of the company in mid to long term period.

The profitability of Q2FY21 was well supported by a better product mix, timely procurement of raw material and various cost optimization measures put in place by the company. The said profit also includes a gain under AS 116 for an amount of Rs 4.08 crores towards future closure of its distribution center, depots and one of its store.

Capex spends of the company for Q2 FY21 stood at (20.83 crore consisting expenditure towards Moulds, Plant & Machineries', Factory building, Office and Factory equipment's, Furniture & Fixtures, Electrical Installation etc).

The total net borrowing of the company stood at surplus of Rs 145.52 crore as on 30th September, 2020 as against net borrowings of Rs 53.30 crore as on 30th September, 2019.

The company has successfully commenced the manufacturing operation of its Racking & Shelving plant at Sinnar. The company has expended approx. Rs 25 crore for setting up the said manufacturing facility. The plant shall be able to generate revenue of approx Rs 200 crore at full capacity utilization.

Nilkamal Storage Systems - the company's subsidiary recorded turnover of Rs 29.53 crore for Q2FY21 vis-a-vis Rs 51.92 crore for Q2FY20. The company's subsidiary companies at Sri Lanka showed satisfactory performance as anticipated by the company whereas the other subsidiary at Ajman, UAE displayed a subdued performance. Cambro Nilkamal the company's US Joint Venture has recorded a turnover of Rs 6 crore during Q2FY21 vis-a-vis Rs 13.95 for Q2FY20. However, the business of the said joint venture and subsidiary companies is negligible as compared to the standalone business of the company.

Performance for half year ended Sep'20

For half year ended Sep20, consolidated net sales fell 29% to Rs 785.68 crore. The company operating margins decreased 300 bps to 9.8%. As a result operating profits fell 46% to Rs 77.11 crore. Other income rose 12% to Rs 10.33 crore. Interest cost was down 5% to Rs 11.38 crore. Depreciation rose 8% to Rs 47.54 crore.

PBT was down 70% to Rs 28.52 crore. Effective tax rate was up 500 bps to 25.4%. PAT reported was down 72% to Rs 21.28 crore. Further considering share of profit or loss of JV and minority interest net profit fell 74% to Rs 20.57 crore.

The scrip is currently trading around Rs 1348 on the BSE