India’s Gulshan Polyols Net Profit Jumps to 675% for Q4 FY20-21

Gulshan Polyols Ltd., an Indian Calcium Carbonate and Sorbitol manufacturer has reported financial results for the period ended March 31, 2021.

Q4 Results

The company’s net profit grew 675% to Rs 21.54 crores ($3 million) for the period ended March 31, 2021 as against Rs 2.78 crores ($0.38 million) for the period ended March 31, 2020.

Net sales increased 69% to Rs 228.65 crores ($31.4 million) during the period ended March 31, 2021 as compared to Rs 135.53 crores ($18.6 million) during the period ended March 31, 2020.

Full-Year Results

The company posted a net profit of Rs 62.45 crores ($8.6 million) for the full-year period ended March 31, 2021, an increase of 204% as compared to Rs 20.58 crores ($2.8 million) for the full-year period ended March 31, 2020.

The company has reported net sales of Rs 767.90 crores ($105.3 million) during the full-year period ended March 31, 2021, an increase of 24% as compared to Rs 621.74 crores ($85.3 million) during the full-year period ended March 31, 2020.

Dr. Chandra Kumar Jain, Chairman and Managing Director of Gulshan Polyols said: “The COVID-19 pandemic has posed significant unforeseen challenges for all businesses, including GULSHAN POLYOLS LIMITED; however, the transformative organisational changes that we put into action more than 12 months ago and the resilience that we built into the business have enabled us to navigate the uncertainty with confidence and rigour.

Our operational discipline and focused cost optimization programs, leveraging technology are driving our cost lower and is evident in our financial performance. Our unwavering focus on working hard is enabling us to stay ahead of the curve and deliver leading returns.

The Ethanol business has become a feather on the cap of Company’s performance in the Distillery segment which is doing exceptionally well due to processing and supply of ‘Ethanol’ to ‘Public Sector

Companies’ and contributing into revenue growth by Rs 46.33 crores ($6.4 million) in Q4’FY21 vs. Q4’FY20 and on yearly basis, it contributed Rs 127.65 crores ($17.5 million).”

“We are pleased to inform that your Company has become a Debt Free Company as on March 31, 2021. This was only possible due to sound financial controls and management,” he added.

Future Outlook

  • Company has kicked off the process of setting up a 300KLPD Grain based Ethanol Manufacturing Facility at its existing site at Chhindwara, Madhya Pradesh for which Land has been acquired and Environment Clearance is awaited. Shortlisting of suppliers of Capital Items is under process. The project is expected to be on stream shortly after receipt of Environmental Clearance.
  • Company has also received an In-Principle Approval of Government of India-DFPD for grant of Interest Subvention for maximum permissible Loan amount of Rs 170 crores ($23.3 million).
  • Based on Government of India’s ‘Ethanol Blending Petroleum Program’ of selling petrol blended with Ethanol upto 20% by 2025 (Currently it is blending 10% Only), the Management is very much enthusiastic about future outlook of Ethanol Business, so it is exploring new locations and avenues.
  • Company is on track of expansions in Fructose and Sorbitol Business.
  • The Company has seen substantial improvement in demand quarter by quarter including Q4’21. Overall, the Company expects robust performance in Grain and Distillery segments in the Q1’22.