Maithan Alloys Ltd Q4FY21 consolidated PAT climbs to Rs. 85.29 crores

MAITHAN ALLOYS LTD. has reported financial results for the period ended March 31, 2021.

Financial Results (Q4 FY20-21) - QoQ Comparison

The company has reported total income of Rs.505.42 crores during the period ended March 31, 2021 as compared to Rs.451.96 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.85.29 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.55.45 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.29.02 for the period ended March 31, 2021 as compared to Rs.19.04 for the period ended December 31, 2020.

Financials	Q4 FY20-21	Q3 FY20-21	% Change
Total Income	₹ 505.42 crs	₹ 451.96 crs	11.83%
Net Profit	₹ 85.29 crs	₹ 55.45 crs	53.81%
EPS	₹ 29.02	₹ 19.04	52.42%

Financial Results (Q4 FY20-21) - YoY Comparison

The company has reported total income of Rs.505.42 crores during the period ended March 31, 2021 as compared to Rs.436.17 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.85.29 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.64.03 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.29.02 for the period ended March 31, 2021 as compared to Rs.21.99 for the period ended March 31, 2020.

Financials	Q4 FY20-21	Q4 FY19-20	% Change
Total Income	₹ 505.42 crs	₹ 436.17 crs	15.88%
Net Profit	₹ 85.29 crs	₹ 64.03 crs	33.2%
EPS	₹ 29.02	₹ 21.99	31.97%

Financial Results (Year ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.1643.75 crores during the 12 months period ended March 31, 2021 as compared to Rs.1897.04 crores during the 12 months period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.230.84 crores for the 12 months period ended March 31, 2021 as against net profit / (loss) of Rs.222.03 crores for the 12 months period ended March 31, 2020.

The company has reported EPS of Rs.79.02 for the 12 months period ended March 31, 2021 as compared to Rs.76.27 for the 12 months period ended March 31, 2020.

Financials	Year Ended FY20-21	Year Ended FY19-20	% Change
Total Income	₹ 1643.75 crs	₹ 1897.04 crs	-13.35%
Net Profit	₹ 230.84 crs	₹ 222.03 crs	3.97%
EPS	₹ 79.02	₹76.27	3.61%

Commenting on the results and performance, Mr. Subodh Agarwalla, Whole-time Director and CEO said: "FY21 has been a challenging year for all businesses across different sectors. The year started with outburst of CoVID-19 pandemic and lockdown across country. With unlocking of economy and opening of businesses & increase in economic activities, we slowly started witnessing recovery in demand. We have witnessed strong pickup in the demand for our products in Q4 FY21. We are happy that the Company has improved its margin profile & profitability. We reported a PAT growth of 32% YoY and 52% QoQ in Q4 FY21. In this challenging environment, we have reported a strong Manufacturing EBITDA margin and ROCE for FY21 stood at 42.5%. Our business still continues to generate strong cashflow.

We are pleased to inform that the Board of Directors of the Company have recommended a dividend of Rs.6 per equity share of Rs.10/- each (60% of FV) for the financial year 2020-2021.

Steel industry's production growth was on the back of strong domestic demand along with healthy exports. There has been rising steel demand driven by recovery in capital expenditure of states, auto production, white goods production and real estate construction activities.

As per the World Steel Association, India's steel demand is expected to rebound by 19.8% in 2021. Government's fiscal stimulus and other growth oriented agenda will drive the demand for steel in quarters to come. We expect that with increase in steel demand there will be increased demand for ferro alloys.

Our manufacturing operations are largely running smoothly despite the ongoing second wave of infections. However, if the pandemic situation worsens leading to imposition of severe restrictions on manufacturing activities, the same would adversely impact our revenues and profitability going forward.

We believe that the short term may be challenging in the view of disruption caused due to CoVID-19 pandemic; however we are confident that the medium-term outlook is going to be stable. The Company has a robust cash position to tide over these challenging times.

With a complete basket of ferro alloys product, strong relationship with the customers and financial flexibility, we feel Maithan continues to be in a sweet spot and will be in a position to grow faster than the Industry."

Shares of MAITHAN ALLOYS LTD. was last trading in BSE at Rs.849.6 as compared to the previous close of Rs. 831.65. The total number of shares traded during the day was 17465 in over 1174 trades.

The stock hit an intraday high of Rs. 865.35 and intraday low of 827.45. The net turnover during the day was Rs. 14839029.

Source : Equity Bulls

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