Singer India Limited announces Q1FY22 Financial Results

- Q1FY 22 Revenue at Rs. 73 crores increased by 44% over the prior year
- Net profit for the Q1 FY22 at Rs.0.3 crores against Net loss of Rs. 1.7 crores last year,
- EBITDA at Rs 1.3 crores in Q1 against negative of Rs 0.9 crores during the last year

The second wave of the Covid pandemic had an adverse impact on the Q1 results due to the widespread restrictions imposed across India. In some locations, such restrictions are still in place today. However, the Q1 FY22 results are much improved compared to Q1 FY21, during the first Covid related restrictions. Revenue was 44% higher and EBITDA was Rs1.3 crores, compared to an operating loss in the prior year.

The overall margins remained at par with the prior year, despite the significant increase in costs of raw materials. These costs were passed onto the market in a phased manner.

The working capital ratios improved once again as inventories and receivables were strictly managed, despite the challenges imposed by the second wave lockdowns. The Company continues to focus on reducing the operating cycle and the interest cost. The interest costs remained significantly lower during Q1 compared to the last year. The company continues to operate with zero borrowings at the end of Q1.

Rajeev Bajaj, Managing Director, Singer India Limited commented that: "Whilst we are still living with the uncertainty of the Covid situation, we expect the demand for consumer products to increase in the forthcoming festival season, boosted by a level of 'pent-up' demand. The Company's management is determined to work harder, with a cautiously optimistic approach, to recover the Covid related shortfall in revenue and profits in the coming quarters. While the supply issues of raw material remain due to pandemic issues, the prices of raw material have now mostly stabilized. The Company has introduced a welfare scheme to assist employee families against the financial hardships resulting from the untimely demise of a Singer staff member due to Covid.

Our sincerest gratitude to all employees and all other associates who stood with us during this difficult period remains."

Shares of Singer India Limited was last trading in BSE at Rs. 55.1 as compared to the previous close of Rs. 56.1. The total number of shares traded during the day was 140965 in over 702 trades.

The stock hit an intraday high of Rs. 58.75 and intraday low of 53.5. The net turnover during the day was Rs. 7947681.

Source : Equity Bulls

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