Other Income increased 49% to Rs 3.7 crore in Q3FY21 from Rs 2.48 crore in Q3FY20 while interest cost fell 17% to Rs 5.12 crore and depreciation rose 4% to Rs 24.41 crore. As a result PBT was up 75% to Rs 71.32 crore. Effective rate of tax fell 360 bps to 24.9% leading a 84% increase in PAT to Rs 53.57 crore. Further considering share of profit or loss of JV and minority interest net profit rose 80% to Rs 54.3 crore.

The business operations of the subsidiary & joint venture companies are negligible as compared to the standalone business of the company. Nilkamal Storage Systems Private Limited (formerly known as Nilkamal Bito Storage Systems Private Limited)- the company's wholly owned Indian subsidiary recorded turnover of Rs 58.78 crore for Q3FY21 vis-a-vis Rs 48.23 crore for Q3FY20. The company's subsidiary company at Sri Lanka and Ajman, UAE showed a satisfactory performance. Further Cambro Nilkamal Private Limited- the company's US Joint Venture has recorded a turnover of Rs 10.96 crore during Q3FY21 vis-a-vis Rs 17.18 crore for Q3FY20.

Consolidated Performance for nine months ended Dec'20

For nine months ended Dec20, consolidated net sales fell 17% to Rs 1412.28 crore. The company operating margins decreased 10 bps to 12.3%. As a result operating profits fell 17% to Rs 174.27 crore. Other income rose 20% to Rs 14.03 crore. Interest cost was down 9% to Rs 16.5 crore. Depreciation rose 6% to Rs 71.95 crore.

PBT was down 27% to Rs 99.84 crore. Effective tax rate was up 220 bps to 25%. PAT reported was down 29% to Rs 74.85 crore. Further considering share of profit or loss of JV and minority interest net profit fell 32% to Rs 74.87 crore.

The Board of Directors has approved a payment of an interim dividend of 50% i.e. Rs 5.00 per equity share of Rs 10 each, which shall be paid to all the members whose names appear on the register of members as on 17 February, 2021

Standalone results performance

Nilkamal continued to move forward on the growth track with a volume growth of 11% and achieved net sales of Rs 566.54 crore (Plastic business Rs 513.37 crore, @home Rs 53.17 crore, Mattress Rs 30.60 crore and Bubble Guard Rs 3.63 crore) as against Rs 492.06 crores (Plastic business Rs 448.80 crore, @home Rs 43.26 crore, Mattress Rs 22.15 crore and Bubble Guard~ 3.23 crore) for Q2 FY21 a growth of 15%. While it has attained a growth of 4% in profit, inspite of firming up of the raw material prices by 10%.

For the quarter, the company has achieved EBIDTA of Rs 97.76 crore as against Rs 65.38 crore and PBT of Rs 69.41 crores (including inventory gain of Rs 3.08 crore) vis-a-vis Rs 37.04 crore of Q3 FY20, whereas the PAT for the period stood at Rs 51.92 crore as against Rs 27.62 crore for the corresponding quarter of previous year. Hence, inspite of the increase in raw material price by 6% and drop in selling price by 8% during Q3 FY21 as against Q3 FY20, the company achieved a growth in PAT by 88%, driven by volume growth of 18%.

The availability of quality products at reasonable prices and supply assurance alongwith seamless service shall continue to play a vital role in the growth of the Company. This is backed by continuous investment in technology for improved performance in supply chain and service standards.

The capex spend for Q3FY21 stood at Rs 18.03 crore which has been majorly utilized towards plant & Machinery, moulds, Lease Equipment, office and factory equipment, furniture and fixtures and electrical installations etc. The company has received capital grant of Rs 2.52 crore from United Nation for installing machineries for adopting environment friendly PU Foam process at its

Kharadpada plant, Silvassa.

The company's manufacturing facility of the Racking & Shelving material handling storage system at Sinnar has been stabilized and has reached the capacity utilization of more than 75% during the current quarter.

The total net borrowing of the company stood at surplus o Rs 112.18 crore as on 31st December, 2020 as against net Borrowings of Rs 28.48 crore as on 31st December, 2020.

The Board of Directors today, has approved the merger of Nilkamal Storage Systems Private Limited (a wholly owned subsidiary of Nilkamal Limited) with itself and has approved the Scheme of Amalgamation under Section 230-232 of the Companies Act, 2013. The major benefits of the said Amalgamation includes consolidation of similar line of businesses of manufacturing of material handling products and enhancement of business opportunities, ease of Business operations (Material procurement and sale synergies, Vendor coordination, Enhanced tendering and bidding track record), reduction in time and efforts of the management and operating team on financials, administration, legal and regulatory compliances of multiple entities, elimination of duplicative communication and coordination efforts, rationalisation of administrative and compliance costs.

The scrip is currently trading around Rs 1742 on the BSE