Net Revenue from Operations for the quarter ended June 30, 2021, was Rs 156.02 crores as against Rs, 104.58 crores in the corresponding quarter of the last year representing an increase of 49.19% over the corresponding period of the preceding year (Q1FY21) and 8.40% over Q1FY20.
EBIDTA (excluding other income) for the quarter ended June 30, 2021, was Rs. 20.16 crores as against Rs. 19.00 crores in the corresponding quarter of the last year representing an increase of 6.10% over the corresponding period of last year.
Net profit for the quarter ended June 30, 2021, was Rs. 11.61 crores as against Rs. 8.40 crores in the corresponding quarter of last year representing an increase of 38.20 % over the corresponding period of last year.
Management Highlights
Covid impacted Sales during late Apr21 and May21. Sales have recovered to normal levels in June 21.
High Covid cases in Kerala have dampened Sales growth, as Kerala contributes 30% of topline, and continues to account for high Covid caseload. Rest of India is compensating for lower growth in Kerala.
The company is making good progress in expansion of its manufacturing facility in Tamil Nadu. Expect to complete it in Q2 of next fiscal.
The company plans on increasing its advertising spends this fiscal; heavy advertising was done in April during IPL, and advertising is resuming pan-India in August.
The Company had spent Rs. 15.70 Cr on Advertisements and Promotions (A&P) in Q1FY22 v/s Rs. 2.56 Cr in Q1FY21.
Despite higher raw material prices, the gross margin expanded by over 1% (over Q1FY21) due to proactive and staggered price hikes effected by the Company.
The EBITDA margins (12.92%) and the PAT margins (7.30%) were primarily impacted due to the higher brand building initiatives undertaken by the Company during IPL in April.
The main engine of growth for the company for the next few years will be an accelerated expansion in dealer network and a corresponding increase in tinting machine population.
Managed to increase active dealer base from 13,200 at the start of this quarter to 13,900 by the end of the quarter and tinting machine population also expanded by 300 numbers from 5,500 to 5,800.
Goal is to increase our active dealer count to 17,000 or thereabouts by the end of the year and tinting machine population to roughly 8,000 by the end of the year.
As a guidance for the year, the company is targeting roughly 35% to 40% growth in top line this fiscal and hope to end the fiscal with an EBITDA margin of around 18.5% or better.
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