Operating profit margin has slumped from 12.58% to 11.60%, leading to 11.68% rise in operating profit to Rs 78.87 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 33.54% to 39.30%. Purchase of finished goods cost rose from 20.52% to 21.99%. Employee cost decreased from 8.47% to 6.48%. Other expenses fell from 24.91% to 21.27%.

Other income fell 25.75% to Rs 1.99 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 17.41% to Rs 56.31 crore. PBIT of Plastics segment rose 13.52% to Rs 59.35 crore (accounting for 105.40% of total PBIT). PBIT of Lifesyle Furniture, Furnishings & Accessories segment fell 29.67% to Rs -3.04 crore (accounting for -5.40% of total PBIT).

PBIT margin of Plastics segment fell from 10.08% to 9.33%. PBIT margin of Lifesyle Furniture, Furnishings & Accessories segment rose from negative 9.95% to negative 6.75%. Overall PBIT margin fell from 8.53% to 8.27%.

Provision for interest fell 11.35% to Rs 7.03 crore. Provision for depreciation fell 5.23% to Rs 25.21 crore. Profit before tax grew 25.41% to Rs 48.62 crore. Share of profit/loss was 56.12% higher at Rs 1.53 crore. Provision for tax was expense of Rs 11.98 crore, compared to Rs 8.01 crore. Effective tax rate was 23.89% compared to 20.15%. Net profit attributable to owners of the company increased 19.84% to Rs 38.06 crore.

Full year results analysis

Net sales (including other operating income) of Nilkamal has declined 7.31% to Rs 2092.2 crore. Sales of Plastic segment has gone down 5.11% to Rs 1,941.56 crore (accounting for 92.52% of total sales). Sales of Lifesyle Furniture, Furnishings & Accessories segment has gone down 27.07% to Rs 156.89 crore (accounting for 7.48% of total sales). Inter-segment sales rose Rs 4.13 crore to Rs 6.25 crore.

Operating profit margin has slumped from 12.46% to 12.10%, leading to 9.98% decline in operating profit to Rs 253.13 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 33.20% to 36.89%. Purchase of finished goods cost fell from 22.13% to 19.80%. Employee cost decreased from 8.43% to 8.23%. Other expenses fell from 23.80% to 23.10%.

Other income rose 11.10% to Rs 16.02 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 16.91% to Rs 171.67 crore. PBIT of Plastic segment fell 15.56% to Rs 175.74 crore (accounting for 102.37% of total PBIT). PBIT of Lifesyle Furniture, Furnishings & Accessories segment rose 167.24% to Rs -4.07 crore (accounting for -2.37% of total PBIT).

PBIT margin of Plastic segment fell from 10.17% to 9.05%. PBIT margin of Lifesyle Furniture, Furnishings & Accessories segment fell from negative 0.71% to negative 2.60%. Overall PBIT margin fell from 9.14% to 8.18%.

Provision for interest fell 9.85% to Rs 23.53 crore. Loan funds declined from Rs 47.92 crore as of 31 March 2020 to Rs 30.72 crore as of 31 March 2021. Inventories rose to Rs 497.96 crore as of 31 March 2021 from Rs 406.35 crore as of 31 March 2020. Sundry debtors were lower at Rs 308.09 crore as of 31 March 2021 compared to Rs 325.01 crore as of 31 March 2020. Cash and bank balance rose to Rs 90.53 crore as of 31 March 2021 from Rs 24.03 crore as of 31 March 2020. Investments rose to Rs 34.86 crore as of 31 March 2021 from Rs 34.26 crore as of 31 March 2020 .

Provision for depreciation rose 3.13% to Rs 97.16 crore. Fixed assets increased to Rs 645.88 crore as of 31 March 2021 from Rs 612.24 crore as of 31 March 2020. Intangible assets stood at Rs 6.76 crore.

Profit before tax shrink 15.31% to Rs 148.46 crore. Share of profit/loss was 73.57% lower at Rs 1.66 crore. Provision for tax was expense of Rs 36.98 crore, compared to Rs 39.15 crore. Effective tax rate was 24.63% compared to 21.56%.

Minority interest decreased 38.24% to Rs 0.21 crore. Net profit attributable to owners of the company decreased 20.52% to Rs 112.93 crore.

Promoters' stake was 64.53% as of 31 March 2021 ,compared to 64.31% as of 31 March 2020 .

Cash flow from operating activities decreased to Rs 202.96 crore for year ended March 2021 from Rs 251.95 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 77.59 crore, compared to Rs 99.54 crore during the year ended March 2020.

Other developments

During FY21 the company has successfully installed and operationalized its new plant at Sinnar to manufacture the metal racking and storage system. Further, the company added 20 new franchise/company operated stores thereby aggregating to 71 stores in all. The company also effectually started the state of art distribution center at Bhiwandi in order to cater the existing and future requirements of the company.

The efficient management of overheads & working capital alongwith revamping of hard and soft infrastructure and supply chain resilience were the main drivers during the challenging times of H1FY21 wherein the company had a volume & value degrowth of 25% & 33% respectively. However due to the company's strong distribution network, healthy relationship with its customers and company's ability of providing all in one services and robust supply chain management system resulted into volume and value growth of 26% & 16 % during H2FY21, which largely offset the covid induced negative impact during H1FY21. Further an additional challenge faced by the company during the H2FY21 was a steep increase in raw material prices by more than 20% (majorly during Q4FY21) as compared to H1FY21 which impacted the profitability.

The company achieved an overall volume & value de-growth of 2% and 9% respectively during the FY21.

The net borrowing of the company stood at surplus of Rs 16 crore as on 31st March, 2021 as against borrowing of Rs 51 crore as on 31st March, 2020.

During the year, the company has declared an interim dividend of Rs 5/- per equity share of Rs 10 each for FY21. The Board has further recommended a final dividend of Rs 10/- per equity share of Rs 10 each, thus making an aggregate dividend of Rs 15/- per equity share for FY21.

The company's retail business under the brand name '@home' achieved sales of Rs 157 crore in FY21 as against Rs 215 crore during FY20.The bubble-guard business achieved a turnover of Rs 18 crore as against Rs 18 crore during FY20. Whereas the mattress business showed a doubledigit growth of 29% thus achieving sales of Rs 91 crore as against sales of Rs 70 crore in the FY20.

During FY21, the company continues to expend on various businesses and has incurred capex of RS 77 crore.

The scrip is currently trading around Rs 2350 on the BSE