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    Pricol FY21 results: New biz, better cost control help automotive component maker turn the corner

    Synopsis

    Revenue for the quarter improved 60% year-on-year to Rs 421 crore, while EBITDA improved 50% to Rs 57 crore as automotive sales gained traction during the quarter.

    PROFITS
    The sharp increase in commodity prices ate into the company’s margin during the quarter, he said.
    Mumbai: Automotive component maker Pricol reported a sharp growth in revenue for the January-March quarter helping it end the fiscal in the black after two successive years of loss.

    Revenue for the quarter improved 60% year-on-year to Rs 421 crore, while EBITDA improved 50% to Rs 57 crore as automotive sales gained traction during the quarter. Subsequently, the company reported a net profit of Rs 3 crore as against a loss of Rs 121 crore last year.

    “Our growth for FY 21 has been higher than the growth of the corresponding segments of the market which has been mainly driven by introduction of new products as well as increased share of business from our customers on account of sustained performance and tight cost control,” said Vikram Mohan, Managing Director, Pricol Limited.

    The sharp increase in commodity prices ate into the company’s margin during the quarter, he said.

    For the complete fiscal year ending March, the company reported a profit of Rs 15 crore as against a loss of Rs 213 crore in FY20. Revenue for the year improved 17% to Rs 1,336 crore while EBITDA grew by 82% to Rs 178 crore.

    The stock of Pricol Limited ended 1.16% lower on Wednesday at Rs 85 against a 0.75% increase in the benchmark Sensex.

    “As our company is highly dependent on import of electronic child parts, the global shortage of ICs resulted in higher raw material prices and loss of production due to non-availability of select (integrated circuits) in Q4 FY21,” Mohan said.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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