Munjal Showa Limited's net profit declined 43.93% to Rs5.82cr in the financial results announced on Wednesday for the quarter ended March 2021 as against Rs10.38cr during the previous quarter ended March 2020. Revenue from operations rose 26.58% to Rs316.47cr in Q4FY21 as against Rs250.02cr in Q4FY20.
For the full year, net profit declined 38.55% to Rs26.14cr in Q4FY21 as against Rs42.54cr in Q4FY20. Revenue from operations declined 15.75% to Rs1085.37cr in Q4FY21 as against Rs1288.20cr in Q4FY20.
Munjal Showa Ltd stock was under pressure at Rs153.50 down by Rs13 or 7.81% from its previous closing of Rs166.50 on the BSE at around 11.16 am.
“The Company’s operations and financial results for the quarter ended Jun 30, 2020 were adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown announced by the Government of India. Pursuant to easing of lockdown, the operations have resumed with requisite precautions in place."
"The Company has carried out all comprehensive assessment of possible impact on its business operations, financial assets, contractual obligation and its overall liquidity position, based on the internal and external| sources of information and application of reasonable estimates. The Company does not foresee any significant incremental risk to the recoverability of trade receivables and inventories,” company said in a filing on Wednesday.
The company said, the cost of materials consumed for the quarter ended March 31, 2021, include Rs867.68 lakhs (including Rs381.38 lakhs pertaining to earlier period), with respect to price increases for the year ended March 31, 2021 agreed with vendors, subsequent to the year-end.
The board of directors of Munjal Showa Ltd at its meeting held on Wednesday, has approved the recommendation of dividend subject to approval of members at 225% viz. Rs4.50 per equity share of Rs2/- each for the financial year 2020-21.