On June 25, 2021, Technocraft Industries (India) Limited released its financial results for the fiscal year (FY21) ended March 31, 2021. From Rs123 crore in FY20 to Rs147 crore in FY21, profit after tax (continuing operations) increased by 19 percent. On a year-over-year basis, EBIDTA climbed by 15%, from Rs246 crore to Rs284 crore. Revenue from operations for FY21 was Rs1,295 crore.
From Rs37 crore to Rs228 crore, free cash flow increased by 516 percent. The earnings per share (EPS) grew from Rs48.96 to Rs58.38. The share’s book value grew from Rs386 to Rs438. Other Income grew from Rs42 crore to Rs58 crore, owing to a rise in the fair value of investments as required by Indian Accounting Standards.
Technocraft Industries (India) Limited was trading at Rs497.65 per piece on the BSE at 11:21 a.m., up Rs20.20 or 4.23 percent. During intraday trading on Monday, the company’s shares reached a new high of Rs500 per share.
Highlights from Different Segments Combined (Yearly Basis)
Revenue from Operations grew from Rs377cr to Rs409cr in the Drum Closure Division. Profit Before Tax and Finance Costs increased by 35% from Rs94 crore to Rs127 crore after depreciation.
Revenue from Operations dropped from Rs525 crore to Rs448 crore in the Scaffolding Division. As a result, profit before tax and finance expenses declined to Rs36 crore after depreciation, owing to increases in steel, aluminium, zinc, and ocean freight prices during the period, as well as a slowdown in building activity due to the impact of Covid.
Management is optimistic that the impact of Covid-19 will be mitigated, and that we will be able to pass on the rise in raw material costs in the medium and long term. Because of the expected development in infrastructure and affordable housing construction demand in India following Covid, the management believes this segment has a bright future.
Textiles: Fabric Division revenue increased from Rs150 crore to Rs158 crore, while Yarn Division revenue decreased from Rs273 crore to Rs264 crore, owing to a challenging business environment in the textile sector and lower capacity utilisation in the Fabric Division, which the management hopes to improve in the future.
Despite the above-mentioned textile and retail sector crises, the Yarn Division’s Loss Before Tax and Finance Costs but after Depreciation decreased from Rs4.76cr to Rs0.57cr, while the Fabric Division’s Loss Before Tax and Finance Costs but after Depreciation decreased from Rs6.77cr to Rs5.93cr. The Yarn Division’s EBITDA climbed from Rs9.4 crore to Rs29.5 crore, while the Fabric Division’s EBITDA stayed same at Rs8 crore.
