In FY21, April and May sales have been a washout because of the lockdown. In June, the company saw sales come back at more than 50 per cent levels of what it had reported in the same month last fiscal (June 2019).
According to Deepak Jalan, MD, Linc Pen & Plastics, "while there was pent-up demand in June, the first full month of operations since unlocking began, it is too early to envisage the levels of demand picking up. Schools and colleges remain closed and exams have been postponed. We saw some pent-up demand in June. There is still uncertainty in the market (about schools and colleges reopening), we can end up with at least 70-80 per cent of last year's sales for FY21.
Resumption of offices could see some additional traction for stationery items. Online sales though have more than doubled; and, gifting categories are gaining traction too.
All its three factories - one in Gujarat and two in Bengal - are operational at 60-70 per cent levels.
The Company is planning to expand distribution beyond the 70,000-odd stationery shops, where its offerings are available. This will be done to partially offset loss in sales through these stores. A consultant has been roped-in and pilot projects had begun before the lockdown.
Linc is also targeting kiranas and mom-and-pop stores with a set of pens under Pentonic brand (launched in FY19). The brand has been amongst the highest contributors in terms of value (and margins) to Linc's overall portfolio. This will help the Company to recover some sales volumes.
Shares of LINC PEN & PLASTICS LTD. was last trading in BSE at Rs.174.7 as compared to the previous close of Rs. 180.65. The total number of shares traded during the day was 1442 in over 92 trades.
The stock hit an intraday high of Rs. 183 and intraday low of 174.7. The net turnover during the day was Rs. 256519.