PG Electroplast (PGEL) announced a net profit of Rs6.1 million for the quarter ending June 2021 (Q1FY22) period against a loss of Rs84.9 million in the same quarter a year ago.
The company posted net revenues of Rs1380 million for the quarter with a growth of 270% yoy.
Key highlights of Q1FY22 are:
The Product business contributed 33% during the quarter and the order book for product business seems robust and the company is on track to scale the product business significantly this year.
During the quarter, the company has been able to raise the fund Equity and Cumulative Compulsory Convertible debentures of a total of Rs 766 million. This fundraising will enable the company to comfortably complete its Capex plan for the financial year.
Significant enquiries for new business are being witnessed across business segments and the acquisition of new client businesses is picking up.
Capex plans along with new product development are progressing at full throttle and Management remains confident of timeliness on the project completion.
Anurag Gupta, Chairman of the Company said, "The Covid-19 second wave led shutdown to plants closure starting April end till June 1st week, leading to loss of production and sales for the quarter. The operational performance has been reasonable despite the negative operational leverage as several cost-cutting initiatives have led to cost control and thus operating margin stability."
Gupta added, "During the quarter, the company completed a round of equity fundraising for growth and the construction for the expansion of facilities in Supa, Ahmednagar and Greater Noida are going on full throttle with likely completion by November. The product development for AC ODM model is completed and samples are being evaluated by prospective clients. We are confident of the good times for the company and FY2022 would be a landmark for the company’s product business."
Going forward, the company's management sees increased opportunities in the existing and new clients and based on the current business environment. With new capacities and capabilities, the company is uniquely positioned in the consumer durables & automotive plastics space in India.
In the coming quarters, PGEL aspires to:
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Achieve industry-leading growth in Revenues.
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Gradually improve in margins due to operational efficiencies and operating leverage.
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Better capital efficiency, through improved cash flows & optimizing the balance sheet.
At around 2.02 pm, PG Electroplast is trading at Rs 348.55 per piece up 1.9% on Sensex.