The company operating margins decreased 110 bps to 13.4% leading to 16% decrease in operating profits to Rs 112.26 crore. Other income was Rs 62 lakh compared to Rs 51 lakh. Interest cost was down 10% to Rs 23.98 crore. Depreciation fell 6% to Rs 37.76 crore. PBT was down 24% to Rs 51.14 crore. Effective rate of taxes was down 340 bps to 22.1%. PAT reported was down 20% to Rs 39.83 crore. Further considering MI, Net profit was down 21% to Rs 38.45 crore. 

Segment wise, Polymer products revenue stood at Rs 578.9 crore, down by 10% YoY and accounted for 69% of sales. PBIT from the same was down 23% to Rs 50.26 crore and accounted for 67% of total PBIT with PBIT margin at 8.7% compared to 10.1% in Dec19 quarter.  

Composite products revenue stood at Rs 255.91 crore down by 8% YoY and accounted for 31% of sales. PBIT from the same was down 15% to Rs 24.24 crore and accounted for 33% of total. PBIT margins stood at 9.5% as compared to 10.2% for Dec19 quarter.  

The Company has received first time in India approval from PESO for manufacturing of carbon Fibre Wrapped Composite Cylinder Type IV for CNG cascade.

Performance for the nine months ended Dec20 

For nine months ended Dec20, net sales fell 23% to Rs 2053.73 crore. The company operating margins decreased 170 bps to 12.6%. As a result operating profits fell 32% to Rs 258.08 crore.  

Other income was Rs 1.57 crore compared to Rs 1.3 crore. Interest cost was down 10% to Rs 74 crore. Depreciation fell 5% to Rs 112.7 crore. PBT was down 60% to Rs 72.96 crore. 

Effective tax rate was up 50 bps to 25.9%. PAT reported was down 60% to Rs 54.05 crore. 

The share of value added products is 21.4% of total sales in 9MFY21 as against 20.4% in 9MFY20. 

For the 9 months, sales from the polymer products fell 24% to Rs 1422.26 crore and accounted for 69% of sales. PBIT from the same was down by 47% to Rs 97.83 crore and accounted for 67% of total with PBIT margin at 6.9%.  

Sales from the composite products fell 20% to Rs 631.47 crore and accounted for 31% of sales. PBIT from the same was down 39% Rs 47.55 crore and accounted for 33% of total with PBIT margin at 7.5%.

Management Comment 

Anil Jain, MD & CEO of the company said, "We are pleased to report a quarter on quarter improvement in the performance. This is in line with our stated outlook of an improved performance in the second half of the current financial year. Strategically, our focus remains on increasing the contribution from value-added products, notably the recently approved Type-IV Composite Cylinder for CNG Cascades for which the company has already started executing orders. We are also receiving overwhelming response for our packaging products i.e. IBC and large sized drums, from all the three locations in USA i.e. Chicago, Houston and Iowa. Overall, we are well positioned to meet our guidance for the full year despite major disruption seen in first half of the current financial year." 

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