Himatsingka Seide Ltd reports earnings for Q1FY21

Himatsingka Seide Ltd. announced its financial results for the quarter ended June 30, 2020, on August 27, 2020.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2020

- Consolidated Total Income for Q1 FY21 stood at ₹183.29 Crores vs ₹644.55 Crores in Q1 FY20, a decline of 71.6%.

- Consolidated EBITDA for Q1 FY21 was a loss of ₹80.71 Crores vs a profit of ₹143.08 Crores in Q1 FY20

- Consolidated EBIT for Q1 FY21 was a loss of ₹118.66 Crores vs a profit of ₹116.32 Crores in Q1 FY20.

- Consolidated PBT for Q1 FY21 was a loss of ₹164.00 Crores vs a profit of ₹72.29 Crores in Q1 FY20.

- Consolidated PAT for Q1 FY21, was a loss of ₹139.79 Crores vs profit of ₹45.25 Crores in Q1 FY20

BUSINESS UPDATE

Impact of COVID-19 on Operations

The Q1 FY21 operating performance has been severely impacted on account of COVID-19. Our manufacturing facilities at our Hassan and Doddaballapur campuses along with our distribution facilities in North America and Europe were non-operational during April and most of May, 2020. This was on account of the lockdown imposed by the Central and State Governments, respectively. Our plants commenced partial operations during the month of June, 2020. However, the operating conditions remained challenging due to supply chain disruptions and interruptions in work force availability.

- In addition to the above, our Client mix largely comprised of retailers who did not provide essential goods and services in their respective jurisdictions and hence were either closed or operated with minimal store operations. Consequently, they either temporarily held and or postponed shipments scheduled for Q1 FY21 to later dates.

- The 71.6% decline in Consolidated Total Revenue is essentially attributable to the above factors.

- While we may face COVID-19 related interruptions from time to time, the ramping up of capacity utilizations across all our facilities has been progressing well during Q2 FY21.

- On the order book front, while the Q2 FY21 order book looks healthy under the circumstances, our H2 FY21 order pipeline is robust and we remain focused to surpass pre-COVID-19 levels during H2 FY21.

Other Business Updates

- The ramp up of capacity utilization at our new Terry Towel facility is progressing well. The utilization levels will continue to increase in H2 FY21.

- The Company continues to increase its presence in Europe, Middle East and Asia Pacific Regions. In addition, we also remained focused on enhancing our presence on e-commerce platforms globally.

- In order to navigate the challenges on account of COVID-19, we have undertaken several cost optimizations measures, while attempting to ramp-up operations at the earliest. In addition, we continue to have healthy cash reserves to meet challenges as the ramp-up process is underway.

Commenting on the Company's performance, Mr. Shrikant Himatsingka, Managing Director & Group CEO said: "The last few months have been extremely volatile and challenging on many fronts. While our operating performance has been severely impacted during the last two quarters, we feel the worst is behind us. The demand for home textile products is robust and we are well positioned to meet his demand by leveraging our strong manufacturing base, global brand portfolio and broad product range."

Shares of HIMATSINGKA SEIDE LTD. was last trading in BSE at Rs.89.25 as compared to the previous close of Rs. 92.95. The total number of shares traded during the day was 78027 in over 862 trades.

The stock hit an intraday high of Rs. 93.25 and intraday low of 88.2. The net turnover during the day was Rs. 7103652.

Source : Equity Bulls

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