Capitaline

Results 28-May-22

Analysis

Singer India

Sales and OPM declines

Net sales (including other operating income) of Singer India has declined 4.07% to Rs 124.78 crore in the quarter ended March 2022. Operating profit margin has declined from 4.97% to 2.66%, leading to 48.61% decline in operating profit to Rs 3.32 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 2.09% to 2.20%. Purchase of finished goods cost fell from 77.35% to 76.18%. Employee cost increased from 4.86% to 6.19%. Other expenses rose from 11.40% to 12.81%.

Other income fell 95.65% to Rs 0.04 crore. PBIDT fell 54.47% to Rs 3.36 crore. Provision for interest fell 61.11% to Rs 0.14 crore.

Loan funds rose to Rs 2.89 crore as of 31 March 2022 from Rs 1.82 crore as of 31 March 2021. Inventories declined from Rs 80.20 crore as of 31 March 2021 to Rs 73.06 crore as of 31 March 2022. Sundry debtors were higher at Rs 49.84 crore as of 31 March 2022 compared to Rs 47.67 crore as of 31 March 2021. Cash and bank balance rose to Rs 24.27 crore as of 31 March 2022 from Rs 15.78 crore as of 31 March 2021. Investments rose to Rs 1.92 crore as of 31 March 2022 from Rs 1.84 crore as of 31 March 2021.

PBDT fell 54.13% to Rs 3.22 crore. Provision for depreciation declined 39.29% to Rs 0.51 crore. Fixed assets declined from Rs 10.76 crore as of 31 March 2021 to Rs 8.54 crore as of 31 March 2022. Intangible assets declined from Rs 0.30 crore to Rs 0.18 crore.

Profit before tax slipped 56.15% to Rs 2.71 crore. Provision for tax was expense of Rs 0.33 crore, compared to Rs 1.26 crore. Effective tax rate was 12.18% compared to 20.39%.

Profit after tax declined 51.63% to Rs 2.38 crore.

Equity capital stood at Rs 10.74 crore as of 31 March 2022 to Rs 10.74 crore as of 31 March 2021. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 57.65% as of 31 March 2022, compared to 58.99% as of 31 March 2021

The Q4 sales were adversely impacted due to inflationary challenges in the raw material and supply related issues faced by the Company. These challenges were partially mitigated by increased sale prices to keep the gross margins at desired levels, but did however still result in slightly lower profitability. Q4 revenue was recorded at Rs 124.8 crore against Rs 130.1 crore last year. The profits after tax from operations fell from Rs 4.9 crore in Q4 2020-21 to Rs 2.3 crore in Q4 2021-22.

The Company however maintained its expenses within the reduced budgetary limits and also continued operations with zero borrowings and a cash surplus at the year ending as March 2022. The interest cost reduced by almost 50% from the previous year.

The Board recommends a final dividend of Rs 1.00 per equity share of Rs 2.00 each (50% on the paid up capital) out of the profits of the FY 2021-22, which has been maintained from the prior year.

Rajeev Bajaj, Managing Director, Singer India Limited commented that: “The Year under review has been a challenging year in many respects. Now we see the rebound in supplies of Zig Zag sewing machines, which were badly hit in the past due to Covid restrictions and had impacted our business significantly. The Zig Zag sewing machines business has been an important and profitable business for the Company in sewing machines segment. Once the inflationary trends are contained and prices which had increased significantly are stabilized, we expect demand to pickup in our home appliances business, which we are seeking to expand with considerable vigour.

We are sincerely grateful to all employees and all other associates who stood with us during this unusual and testing Covid period”.

Financial performance FY2022

Net sales (including other operating income) of Singer India has increased 9.28% to Rs 452.98 crore in FY2022. Operating profit margin has declined from 4.36% to 2.19%, leading to 45.18% decline in operating profit to Rs 9.90 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 2.12% to 2.71%. Purchase of finished goods cost fell from 74.63% to 74.59%. Employee cost increased from 5.70% to 6.33%. Other expenses rose from 13.25% to 14.15%.

Other income up 1.81% to Rs 2.82 crore. PBIDT fell 38.93% to Rs 12.72 crore. Provision for interest fell 53.66% to Rs 0.76 crore.

PBDT fell 37.68% to Rs 11.96 crore. Provision for depreciation eased 26.45% to Rs 2.28 crore. Profit before tax dipped 39.84% to Rs 9.68 crore. Provision for tax was expense of Rs 2 crore, compared to Rs 5.47 crore. Effective tax rate was 20.66% compared to 34.00%.

Profit after tax declined 27.68% to Rs 7.68 crore.

Singer India: Standalone Results
	2203 (3)	2103 (3)	Var %	2203 (12)	2103 (12)	Var %
Sales	124.78	130.07	-4	452.98	414.53	9
OPM (%)	2.66	4.97		2.19	4.36
OP	3.32	6.46	-49	9.90	18.06	-45
Other inc.	0.04	0.92	-96	2.82	2.77	2
PBIDT	3.36	7.38	-54	12.72	20.83	-39
Interest	0.14	0.36	-61	0.76	1.64	-54
PBDT	3.22	7.02	-54	11.96	19.19	-38
Dep.	0.51	0.84	-39	2.28	3.10	-26
PBT	2.71	6.18	-56	9.68	16.09	-40
Tax	0.33	1.26	-74	2.00	5.47	-63
PAT	2.38	4.92	-52	7.68	10.62	-28
EPS (Rs) *	1.8	3.7		1.4	2.0
* Annualized On current Equity of Rs 10.74 crore of face value of Rs 2 each, Figures in Rs crore, Source: Capitaline Corporate Database

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