Shalimar Paints announces its financial results for Q1 2020-21

Shalimar Paints Ltd was significantly affected due to COVID-19 and lockdown announced by the Central & State Government. The Company has two segments Decorative, which is mainly for residential paints and Industrial which is mainly for commercial and manufacturing paints. While both the businesses were impacted, the effect on residential business has started to recover faster. This may be due to completion of on-going projects or re-painting jobs in semi-urban areas.

Consequently, company sales were limited in Q1 FY-21 to Rs. 44.48 crores as against Rs. 85.06 crores in same period last year with most of the cost other than raw-materials being of fixed nature, the reduction in sales revenue impacted the bottom line significantly.

The company has negative (-) EBITDA of (5.0 cr) as against (0.3 cr.) in same quarter of previous year.

Speaking on the quarter results, Mr. Ashok Kumar Gupta, Managing Director - Shalimar Paints, said, "Every challenge is also an opportunity. This COVID might have reduced consumption but has soared the spirits. We, at Shalimar, are even more firm now turning the tide and getting better results in coming months. Towards that end each & every operation is being streamlined and costs being pruned to the lowest possible level."

Shares of SHALIMAR PAINTS LTD. was last trading in BSE at Rs.68.75 as compared to the previous close of Rs. 69.4. The total number of shares traded during the day was 12826 in over 254 trades.

The stock hit an intraday high of Rs. 70 and intraday low of 66.15. The net turnover during the day was Rs. 873359.

Source : Equity Bulls

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