Singer India records Rs.3.21 Crores net profit after tax in Q2 of FY 2020-21

Singer India Limited has recorded an impressive rebound in revenue during Q2 of the FY 2020-21 to Rs. 106 crores as sales reached last year's levels despite partial lock-downs in some areas and a continuing slow recovery in certain channels like Canteen Stores and Micro Finance Institutions. The positive recovery was witnessed in both the Company's business segments, viz. sewing machines and home appliances.

As a result of the continuing cost control measures and working capital management, the profits in the quarter ended 30th September 2020 soared 104% over the prior year and the Covid-19 lock-down related losses incurred during Q1 of the current FY have been fully eliminated cumulatively as of 30th September 2020. On account of the positive cash flows from operations the Company was able to repay all its bank borrowings during the Q2 of FY 2020-21 and is debt free with a positive cash balance at 30th September 2020 of Rs. 32.1 crores. The Company also concluded the sale of its redundant foundry unit in Jammu in September 2020 augmenting the cash position.

As the uncertainties relating to Covid-19 have some what reduced now, the Board have decided to declare an interim dividend of 25% on the Paid up Capital of the Company for the financial year 2020-21. The record date for the purpose of this dividend has been set as 19th November, 2020.
Rajeev Bajaj, Managing Director, Singer India Limited commented; "We are very pleased with the recovery of the business during Q2 and especially the increased profitability and cash generation. The Covid-19 pandemic has resulted in a global surge of sewing machine sales and given the strength of the Singer brand, the company remains well positioned to benefit from this. The interim dividend declared by the Board reaffirms the strength of the Company's balance sheet and positive outlook going forward.

The Head office of the Company is fully functional now with the application of appropriate safety measures. The Plant and other operational units are running at full capacity. Travel is undertaken only for essential activities restricting it otherwise for safety of the staff and the customers. The Management is grateful to its employees and business associates for their tremendous support and assistance."

Shares of SINGER INDIA LTD. was last trading in BSE at Rs.28.25 as compared to the previous close of Rs. 28.15. The total number of shares traded during the day was 8453 in over 44 trades.

The stock hit an intraday high of Rs. 28.7 and intraday low of 28.1. The net turnover during the day was Rs. 239317.

Source : Equity Bulls

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