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Financial Highlight
- Total Income up by 45% YoY at Rs. 187 crores
- EBITDA up by 11% at Rs. 47 crores
- Profit After Tax up by 15% at Rs. 25 crores
- Declared Interim Dividend of Rs. 7 per equity share of Face Value of Rs.10 each
Commenting on the results, Mr. Arvind Goenka, Promoter and Managing Director said "We have reported total income of Rs.187.3 crores in the first half of the current fiscal with EBITDA and PAT of Rs.47.2 and Rs. 25.1 respectively. This was on the back of revival in demand post the second wave of the pandemic, normalization of replacement and OEM demand in domestic and international markets, improvement in economic activities with significant decline in covid cases and increase in vaccination rate.
Sharp increase in raw material costs and freight costs has resulted in lower margins and impacted overall profitability with the time lag in raising the finished product prices. We continue to be focused on improving operational efficiencies and are continuously taking steps towards controlling costs.
The business environment is stable except for South Asian markets which is still affected by Covid. Operations at both our plants are running smoothly. The Company is in the process of starting trial runs of its upcoming Insoluble Sulphur plant at Dharuhera and we expect to commission the project in November 2021.
In order to reward the shareholders for their continuous support, the Board of Directors have recommended an Interim Dividend of Rs. 7 per equity share of FV of Rs. 10 each.
The Indian Tyre market is witnessing capacity expansions undertaken by tyre manufacturers and new products have been introduced over past few months. Indian Tyre market offtake appears to be optimistic. With increasing radialization in LCV and TBR tyre consumers, on account of superior mileage and fuel efficiency will drive large consumption of insoluble sulphur. We expect this momentum to sustain going ahead led by the normalization of operations in most markets and the upcoming festive season in India.
With the completion of our capacity expansion, we are optimistic of gaining new orders on back of our long standing relationship with our customers. We are on a strong footing to deliver sustainable and profitable longterm growth with our dominant position in the industry, being the only domestic player producing IS with domestic market share of -60% and -10% global market share, and a marquee customer base of 40 tyre OEMS"
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