Asahi Songwon Colors Reports 57% Rise in Net Profit for Q1 FY20-21

Asahi Songwon Colors Ltd., a pigments manufacturer based in India announced its results for the first quarter ended June 30, 2020.

Q1 Results- QoQ

The company’s net profit grew 57% to Rs 9.53 crores ($1.3 million) for the period ended June 30, 2020 as against net profit of Rs 6.07 crores ($0.87 million) for the previous quarter.

Net sales declined 19.5% to Rs 57.99 crores ($7.8 million) during the period ended June 30, 2020 as compared to Rs 72.01 crores ($9.6 million) during the previous quarter.

Q1 Results- YoY

The company’s net profit grew 77.5% to Rs 9.53 crores ($1.3 million) for the period ended June 30, 2020 as against net profit of Rs 5.37 crores ($0.72 million) for the prior-year quarter.

Net sales during the quarter declined 29% to Rs 57.99 crores ($7.8 million) as compared to Rs 81.79 crores ($10.9 million) during the prior-year quarter.

On the impact of the pandemic on its business, Asahi Songwon Colors Ltd in its stock exchange filing said, “The manufacturing facilities of the Company commenced operations from second week of April, 2020 after obtaining permission from the appropriate Government authorities and adhering to prescribed guidelines issued by the State and Central Government of India.

The Company’s internal assesment concluded no significant impact due to COVID -19 on the current quarter financial results. However, the assessment of Impact of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to closely monitor any material changes to future economic conditions impacting business operations.”