Singer Home Appliance sales surge 17.2%

The sales of Singer India Limited's Home Appliance surged by 17.2% in FY 19-20 and accounted for 37% of the total revenue as against 30% in FY 18-19. The Sewing Machine sales declined due to lower government related which dropped from Rs.64 crores in FY 18-19 to Rs.15 crores in FY 19-20. Sewing sales in the retail and trade channels remained consistent with the prior year.

The profit contribution from the Home Appliance sales also increased significantly to Rs. 1.2 crores in FY 19-20 against Rs. 12 lacs in FY 18-19.

The total revenue in FY 19-20 was impacted by the Covid pandemic lockdown in mid- March and at Rs. 451 crores was 6.6% lower than the prior year.

EBITDA increased 9.3% to Rs. 18.45 crores in FY 19-20 as against Rs. 16.89 crores in FY 18-19. However, Profit After Tax was slightly down at Rs. 8.12 Crores in FY 19-20 as against Rs. 9.26 crores in FY 18-19 primarily due to sales lost due to the Covid lockdown and higher interest costs.

In view of the uncertainty related to Covid Pandemic, the Board has resolved not to recommend dividend for FY19-20. However, the Board will certainly consider recommending interim dividend/s in the months ahead depending upon the timing and success of the Covid recovery.

Rajeev Bajaj, Managing Director, Singer India Limited commented “2020 will forever be remembered as the year of the Covid Pandemic. This has impacted almost every corner of the globe. At the onset of the pandemic, Singer India immediately set about reorganizing its business to contain costs and improve the working capital cycle. Thankfully, the sales recovery is now ahead of our expectations. This was due to the hard work and sacrifice of the Singer management and staff, despite the significant challenges that presented themselves."

Shares of SINGER INDIA LTD. was last trading in BSE at Rs.26.05 as compared to the previous close of Rs. 26.6. The total number of shares traded during the day was 36336 in over 149 trades.

The stock hit an intraday high of Rs. 27 and intraday low of 25.4. The net turnover during the day was Rs. 937755.

Source : Equity Bulls

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