Pricol Limited (BSE: 540293 / NSE: PRICOLLTD), a leading manufacturer of automotive components for the global automotive market, announced its results for fourth quarter of FY 18-19 today.
- Pricol Limited's revenue from operations de-grew by 1.95% y-o-y in Q4 FY 18-19 compared to the corresponding quarter in FY 17-18.
- Pricol Limited's revenue from operations grew by 10.30% y-o-y for FY 18 -19 compared to the corresponding period in FY 17-18.
- Growth in the last quarter was much lesser than expected with lower demand from all of our customers mainly due to weak market sentiment due to introduction of BS-VI from April 2020. Prolonged strike by a section of the workmen at our Coimbatore has increased our employee cost in Q4 of FY 18-19, but strong alternative measures have been taken to reduce the impact.
- The Board has, subject to shareholders and regulatory approvals, taken a considered decision to hive off its investment in its wholly owned subsidiary, Pricol Espana S.L., Spain, primarily to hive off the step down subsidiary unit at Brazil which requires continuous investments for its day to day operations. The Board is necessitated to hive off its other step down subsidiaries, Pricol Wiping Systems Czech s.r.o and Pricol Wiping Systems Mexico S.A. de C.V. along with the Investment in Pricol Wiping Systems India Limited as a strategic/ bundled offer, reckoning commonality of customer base and in order to minimise the financial impact of the disposal. The decision was taken to arrest further flow of funds into markets which are not conducive for sustaining the business at the current levels and also which does not seem to revive in the near future. Consequently, these investments have been classified as Non-Current Investments held for sale in accordance with Ind AS 105 - "Non-Current Assets held for sale and Discontinued Operations". A provision of INR 23197.75 Lakhs, including an estimated devolvement on account of guarantee, has been made in Standalone Financial Statements based on a preliminary assessment of estimated realisable value of the Investments less cost to sell and an Impairment of Goodwill on Consolidation of INR 5170.67 Lakhs has been provided in the Consolidated Financial Statements. Any additional provision to be made or excess provision to be reversed will be appropriately dealt with in the year in which the transaction reaches finality.
Mr. Vikram Mohan, Managing Director, Pricol Limited said "The entire automotive industry has started slowing down very sharply from the fourth quarter of 2018-19. Industry experts predict that this slowdown will continue until June 2020. Consequently, our projected sales also will be de-rated in line with the industry output. We have been able to recoup the adverse impact of forex and electronic prices surge to a great extent.
With the proposed divestment of our manufacturing subsidiaries in Europe, North America & South America, our consolidated sales will drop very significantly, nevertheless, we will be paring down our debt significantly and also divesting the chronically loss making subsidiary in Brazil, thereby helping us achieve a healthier balance sheet and overall positive cash flows."
Shares of Pricol Ltd was last trading in BSE at Rs.35.8 as compared to the previous close of Rs. 37.2. The total number of shares traded during the day was 8222 in over 63 trades.
The stock hit an intraday high of Rs. 37.15 and intraday low of 35.8. The net turnover during the day was Rs. 298984.