Rajoo Engineers Limited announces Q3FY22 earnings

Rajoo Engineers Limited (BSE: 522257), amongst leading plastic extrusion machine manufacturers in India, with nearly 35 years of "excellence in extrusion" in the industry, announced its unaudited financial results for the third quarter and nine months ended 31st December 2021. These financials are as per the IND AS accounting guidelines.

Performance Highlights - For the Third quarter ended 31st December 2021

Revenue from operations for the quarter was Rs. 42.43 crore in Q3 FY22, as against Rs. 42.16 crore in Q3 FY21, a YoY increase of 0.63%, driven by domestic and export sales. Lifting of machines was comparatively higher in Q3 FY21 as certain delayed deliveries of machines during first two quarters because of pandemic had been executed during third quarter.

EBITDA (excluding Other Income) was at Rs. 5.40 crore in Q3 FY22 as against Rs. 5.39 crore in Q3 FY21, increased of 0.33% YoY. Improved operational efficiencies were partially offset by higher VAT and CST input balance write-off, which put pressure on EBITDA Margins.

Profit after Tax was Rs. 3.29 crore in Q3 FY22 compared to Rs. 3.30 crore in Q3 FY21, YoY decrease of 0.43%. PAT Margin was at 7.75% as against 7.83%, YoY decrease of 8 bps due to higher income tax provision.

Basic EPS stood at Rs. 0.53 in Q3 FY22 as compared to Rs. 0.54 in Q3 FY21.

For the Nine months ended December 31st, 2021:

Revenue from operations in 9M FY22 Rs. 112.37 crore as against Rs. 95.93 crore in 9M FY21, a YoY increase of 17.14%

EBITDA (excluding Other Income) stood at Rs. 12.61 crore in 9M FY22 as against Rs. 12.48 crore in 9M FY21, increase of 1.09% YoY. EBIDTA Margin was at 11.23% - a decrease of 178 bps YoY due to volatile and high Raw Material costs resulting in pressure on the margins for 9M FY22.

Profit after Tax was Rs. 7.69 crore in 9M FY22 compared to Rs. 7.05 crore in 9M FY21, YoY increase of 9.11% and PAT Margin was at 6.85% - a decrease of 50 bps YoY

Basic EPS stood at Rs. 1.25 in 9M FY22 as compared to Rs. 1.15 in 9M FY21, YoY increase of 8.70%

Commenting on the Company's performance, R. N. Doshi, Chairman, Rajoo Engineers Ltd said: "With recovery in the markets post the pandemic, the last quarter has been better in terms of volumes. During the third quarter we registered a slight growth year-on-year in revenue at Rs.42.43 cr. EBITDA and PAT to Rs. 5.40 crore and Rs. 3.29 crore, respectively. While domestic as well as export sales grew this quarter, revenue growth was marginal mainly due to Company's focus was on business sustainability considering the uncertainty around. Despite volatility & increase in raw material prices and higher employee costs due to performance appraisals, we have managed to maintain EBITDA margins and improve PAT margins.

As the impact of the pandemic decrease gradually, there has been an increase in the adoption of packed foods, and thereby, the extruded plastic products, which has triggered demand for plastic extrusion machinery. We are focusing on identifying just the right technologies and mix, to add value to our client's business.

Going into the fourth quarter, we are witnessing gradual recovery in the market after the impact of the third wave of the pandemic. Consumer sentiments in India and overseas markets is encouraging.

I would like to thank each member of the Rajoo family, as well as our Clients, Creditors, Banks, Financial Institutions, and all other Stakeholders. Their faith in us and support extended makes it easier for us to strive and excel."

Shares of RAJOO ENGINEERS LTD. was last trading in BSE at Rs. 38.10 as compared to the previous close of Rs. 34.80. The total number of shares traded during the day was 327124 in over 2024 trades.

The stock hit an intraday high of Rs. 38.25 and intraday low of 34.05. The net turnover during the day was Rs. 12135286.00.

Source : Equity Bulls

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RAJOOENGINEERS INE535F01024 Q3FY22 9MFY22 ResultUpdate