Automotive components and precision-engineered products manufacturer Pricol recorded a profit after tax (PAT) of INR 2.91 crore in the last quarter ended on March 31, 2021, against a loss of INR 120.76 crore in Q4FY20.
In a regulatory filing, the company said the revenue from operations for the fourth quarter of FY21 stood at INR 420.94 crore as compared to INR 263.39 crore in the fourth quarter of FY20, recording a jump of 59.81 %.
On the financial results, Vikram Mohan, Managing Director, Pricol, said, “Our results are in line with our expectations and an outcome of our sustained efforts to reduce costs, increase productivity and enhance market share for our products. Our growth for FY21 has been higher than the growth of the corresponding segments of the market, which has been mainly driven by the introduction of new products as well as an increased share of business from our customers on account of sustained performance and tight cost control. The impact of the first wave of COVID-19 and the subsequent lockdown had a major impact on the company’s performance in Q1 FY21. Whilst we were able to bounce back very strongly, a steep increase in commodity prices had an impact on the EBITDA of the company in Q4 FY21.”
The company said that it is highly dependent on the import of electronic child parts; the global shortage of ICs resulted in higher raw material prices and loss of production due to non-availability of select ICs in Q4 FY21. However, the component manufacturer is bullish about the long term prospects as it has heavily invested in technology and capacity building in the prior years.
“Compounded by the efforts on increasing efficiency and productivity, as well as thrust on exports has helped the company launch new products and increase its market share and this will have a favourable long term impact once the pandemic is brought under control,” said Mohan.
Pricol has seven manufacturing plants across Coimbatore, NCR, Pantnagar, Pune & Sricity, one subsidiary manufacturing plant in Satara, India and one manufacturing unit in Indonesia with two international offices in Tokyo and in Singapore.