Poddar Pigments Ltd Reports Net Profit of Rs 1.61 Cr for Q1 FY20-21

Poddar Pigments Ltd., a pigment manufacturer based in India announced its results for the first quarter ended June 30, 2020.

Q1 Results- QoQ

The company’s net profit dropped 73% to Rs 1.61 crores ($0.22 million) for the period ended June 30, 2020 as against net profit of Rs 5.95 crores ($0.82 million) for the previous quarter.

Net sales dropped 52% to Rs 37.69 crores ($5.2 million) during the period ended June 30, 2020 as com-pared to Rs 78.58 crores ($10.8 million) during the previous quarter.

Q1 Results- YoY

The company’s net profit declined 66.3% to Rs 1.61 crores ($0.22 million) for the period ended June 30, 2020 as against net profit of Rs 4.77 crores ($0.65 million) for the prior-year quarter.

Net sales dropped 61.3% to Rs 37.69 crores ($5.2 million) during the period ended June 30, 2020 as compared to Rs 97.41 crores ($13.3 million) during the prior-year quarter.

On the impact of the pandemic on its business, Poddar Pigments Ltd in its stock exchange filings said, “The Company’s performance has impacted considerably by COVID- 19 pandemic. The Liquidity position has also impacted as payment of bills receivables are getting delayed due to this unprecedented situation. The COVID-19 crisis will adversely affect the profitability during the FY 2020-21 as a whole.”

“The on-going construction of Chaksu plant resumed from 26th April, 2020 but at slower pace due to labour shortage. The situation is likely to delay the project by atleast 2-3 months,” it added.

“The Company is making every possible effort to ensure to end up this current financial year with reasonably achieving satisfactory level but there will be reasonable drop in top line as well as in the bottom line because this pandemic has huge impact on market demand,” the Company said.