Sudarshan Chemicals net sales fell 14% to Rs 352.29 crore in Q1FY21 compared to Q1FY20. The company operating margins decreased 40 bps to 15% leading to 16% decrease in operating profits to Rs 52.96 crore.
Quarterly performance impacted as plants restarted slowly after nationwide lockdown. Roha plant had to be shut down due to Covid 19 for a brief period despite following all safety standards. Start stop nature of operations has resulted in loss of economies of scale and efficiencies. Exports was higher this quarter and accounted for 64% of sales, Domestic sales were curtailed due to the lockdown. Speciality chemicals continue to have stronger traction and saw lower de growth as compared to non speciality chemicals.
Other income decreased 64% to Rs 31 lakh compared to Rs 84 lakh. Interest cost was up 5% to Rs 3.9 crore. Depreciation was up 27% to Rs 21.58 crore. PBT before EO was down 36% to Rs 27.8 crore. The company had nil EO items in Q1FY21 compared to EO income of Rs 19.33 crore in Q1FY20 related to profit on sale of subsidiary. PBT after EO was down 56% to Rs 27.8 crore.
Tax provision was Rs 9.6 crore compared to Rs 19.26 crore. PAT reported was down 58% to Rs 18.2 crore.
The company's 15 days of production loss due plant closure at Roha (Covid 19 ) in July, expect to make it up during Q2 itself. The company is seeing early signs of demand pick up while it remains optimistic that demand sustains.
Performance for the year ended Mar20
For year ended Mar20, net sales rose 7% to Rs 1708.19 crore. The company operating margins increased 160 bps to 14.4%. As a result operating profits increased 21% to Rs 246.31 crore.
Other income fell 33% to Rs 4.68 crore. Interest cost was Rs 14.23 crore compared to Rs 17.04 crore. Depreciation rose 12% to Rs 73.51 crore. PBT before EO was up 27% to Rs 163.26 crore. The company had net EO income of Rs 17.17 crore related to net gain for transfer of its industrial mixing solutions division compared EO income to Rs 72.27 crore in the corresponding previous year period related to gain from sale of subsidiary. PBT after EO fell 10% to Rs 180.43 crore.
Tax provision was Rs 35.35 crore compared to Rs 67.99 crore. PAT reported was up 9% to Rs 145.08 crore.
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