Singer India Ltd reports Q4FY21 earnings

Singer India Ltd has announced that the business recovered post the lockdown situation witnessed in April / May 2020. There was a surge in demand for sewing machines during the Covid period which produced a growth of 35% in Q4 over the prior year. A 17% growth rate was achieved in home appliance segment during the same period.

Despite the Covid related revenue decline in Q1, the strong recovery and consistent growth in business during Q2 to Q4 resulted in annual FY 2020-21 revenue being at 92% of the prior year. The contribution of sewing machines business remained at 64% of the total turnover of the Company.

The continued focus on improving operating cycles, cost management and cashflows resulted in the improved profitability, despite the lower turnover.

The Board recommends a final dividend of Rs. 0.50 per equity share of Rs. 2 each, which is the same as the interim dividend paid earlier in the year. Once approved, the total dividend for the financial year will be 50% of the paid up capital of the Company.

Rajeev Bajaj, Managing Director, Singer India Limited commented that: "The growth momentum in the post Covid recovery period in FY 2020-21 has been satisfactory, despite various challenges including the steep increase in raw material prices and supply related issues. While we will see headwinds again in FY 2021-22 due to the emerged Second Wave of Covid 19, we do not foresee its impact to last for long. At this crucial time, our priority is to increase our operating efficiencies and reduce the costs. We are also revamping our product categories to increase our market share. We are sincerely grateful to all employees and all other associates who stood with us during this unusual and testing Covid period".

Shares of SINGER INDIA LTD. was last trading in BSE at Rs.54.4 as compared to the previous close of Rs. 56. The total number of shares traded during the day was 122349 in over 652 trades.

The stock hit an intraday high of Rs. 57.75 and intraday low of 53. The net turnover during the day was Rs. 6694603.

Source : Equity Bulls

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