GHCL announces Q4, FY20 Results

GHCL, India's leading Chemical & Textile Company announced its financial results for the fourth quarter and the financial year ended March 31, 2020.

Commenting on the financial performance, Mr. R S Jalan, Managing Director, GHCL said "The current COVID-19 pandemic has caused major disruptions in various business segments. The situation accentuated the need for a nationwide lockdown to comprehend the spread of the virus causing significant economic slowdown across the world.

At GHCL we complied with all the regulations notified by the Government from time to time. We had taken the initiative of "Work from home" at our offices and the production facilities also remained closed for a major period of time thus impacting production and sales.

We received continuous support from our stakeholders including Government agencies and supply chain partners. The nation is passing through a tough time today however; we believe that this disruption will create opportunities too. We assure our stakeholders that we will be agile and focused towards these opportunities."

4FY20 VS Q4FY19 (Standalone Performance)

- Net Revenue for Q4FY20 is Rs. 734 crores as compared to Rs. 915 crores of Q4 FY19. The drop in revenue is equally attributable to both Chemical and Textiles which is largely due to softer pricing and COVID impact resulting in lower volumes.

- EBIDTA for the quarter is Rs. 161 crores as compared to Rs. 241 crores in the corresponding previous quarter.

- In the Inorganic Chemicals the realsiation is down by about 11% compared to Q4FY19. However, EBITDA is down by 4% balance has been recovered in cost and operational improvements. Due to COVID-19 the production and sales during the month of March was also impacted.

- In Textiles due to the COVID situation operations were impacted and One Time Cost of Rs. 30 crores has been considered on a prudent basis on account of potential markdowns.

- Net Profit (PAT) at Rs. 80 crores as against Rs.119 crores in the corresponding quarter previous year.

FY20 VS FY19 Standalone Basis

- Net Revenue for the year ended March 2020 is down by 3% to Rs. 3272 crores compared to Rs.3385 crores in the previous financial year.

- Earnings before Interest, Depreciation and Taxation (EBIDTA) for the quarter is Rs. 763 crores as against Rs.784 crores in the previous financial year 2019, with margins maintained at the same level.

- Net Profit (PAT) grew by 13% to Rs 407 crores from Rs. 361 crores in FY19.

Business Segments (FY20 VS FY19)

- In the Inorganics Chemicals division, Revenue for the year is at Rs. 2198 crores as compared to Rs. 2182 crores in FY19.

- Home Textiles business recorded a Revenue of Rs. 1074 crores in FY20 as compared to Rs. 1202 crores in FY19 mainly due to softer yarn pricing and COVID impact during the year.

Shares of GHCL LTD. was last trading in BSE at Rs.98.35 as compared to the previous close of Rs. 97.05. The total number of shares traded during the day was 12301 in over 486 trades.

The stock hit an intraday high of Rs. 101.25 and intraday low of 97.4. The net turnover during the day was Rs. 1214804.

Source : Equity Bulls

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