Asahi Songwon Colors Q4 PAT at Rs6.2cr, revenue rises to Rs90.5cr; Stock slumps 6%

Asahi Songwon Colors Limited, India’s leading manufacturer of pigments for ink, plastics, paint, textile and the paper industry on Sunday announced its financial results for the fourth quarter and full year ended March 31, 2021.

Revenue for the fourth quarter ended March 2021 was Rs90.48cr as compared to Rs71.76cr in the same quarter of the previous year. EBITDA stood at Rs13.53cr for Q4FY21 as compared to Rs10.93cr in Q4FY20. Profit After Tax (PAT) & PAT Margins were Rs6.16 Cr and 6.8% in Q4FY21. EPS was Rs5.06 per diluted share at the end of Q4FY21 v/s Rs4.97 per diluted share in Q4FY20.

The company’s revenue was Rs283.08cr, in FY21, as compared to Rs283.64cr in FY20. EBITDA was Rs49.51cr in FY21, as compared to Rs34.40 Cr in FY20, growth of 44% yoy. Profit After Tax (PAT) & PAT Margins were Rs31.95cr and 11%, in FY21 as compared to Rs22.83cr and 8% in FY20 – growth of 40% and 300bps respectively.

EPS of ₹26.29 per diluted share as compared to Rs18.60 in FY20 – growth of 41%. Cash and Cash equivalents stood at Rs0.45cr. Company announced divided of Rs3.50 per share in FY21 as against Rs3.00 per share in FY20.

Gokul M Jaykrishna, Joint Managing Director & CEO, commented, “I am pleased with the company's overall financial performance in an otherwise challenging year. While revenues have remained largely stable, the resilience in the EBITDA margins with an absolute growth of almost 44% is noteworthy.

The company is now at an inflexion point where the investments in the Azo segment to the tune of Rs82cr will start playing out over the medium to longer term. The Azo segment adds a new growth driver to the well established blue crude business that has been our cash cow over these years and will continue to be so. The Company’s initial outreach to customers for the Azo segment has been favourable and our focus on complex products in this segment will enable us to derive value for the Company and the shareholders.

We are well on our way to becoming one of the largest pigment players by enhancing our product basket to offer a full suite of colour range in organic pigments.”