Hyderabad: Visaka Industries Limited (BSE: 509055, NSE: VISAKAIND) today announced the results for Q4 2020-21 and FY 2020-21. The Company’s exceptional performance can be attributed to volume growth and increased margins in Building Products segment with cement roofing sheets commanding a premium in the market; strong rural growth, opening of urban and semi-urban markets during the year; and digital marketing initiatives which helped the performance. Continuous cost rationalization and digitalization of market outreach strategies helped the company stay on track and achieve increased profits.
January – March 2021 (Fourth Quarter) Performance
Total consolidated revenue from operations for the quarter was INR 35418.50 Lakh, 56% higher as compared to the corresponding quarter of 2020.
PBT for the quarter was INR 4206.45 Lakh as compared to INR 755.10 Lakh showing an increase of 457%. Net Profit for the quarter was INR 3087.40 Lakh as compared to INR 685.71 Lakh showing an increase of 350%.
April 2020 – March 2021 (Full-Year)
Total consolidated revenue from operations for the Financial Year 2020-21 was INR 114653.91 Lakh, 9% higher than the Financial Year 2019-20.
PBT for the Financial Year 2020-21 was INR 14925.57 Lakh compared to INR 5711.66 Lakh in FY 2019- 20, showing an increase of 161%. Net Profit for the Financial Year 2020-21 after tax was INR 11064.27 Lakh as compared to INR 4929.50 Lakh in the Financial Year 2019-20 showing an increase of 124%.
Mr. G. Vamsi Krishna, Joint Managing Director, Visaka Industries Limited attributed the record performance to the company’s focus on reviving the businesses post the COVID-induced lockdown. He was of the opinion that the opening up of the markets, the return of migrant labour and the government’s favourable policies to support the economy, coupled with continuous cost-saving measures adopted by the Company, played a significant role in Visaka’s record performance.
The Cement Roofing Business, in which Visaka Industries Limited is one of the largest players, continued to perform above expectations. The revival, post the gradual easing of the lockdown, in the rural market combined with reversal in rural migration and government’s incentives for the agricultural sector contributed to the growth of the cement roofing sheets business. The Cement Roofing Sheets business was at capacity utilization and commanded a premium in the market.
Visaka’s Fibre Cement Boards, sold under the Brand name – Vnext, continued to improve its performance as the markets opened after the lockdown. The business saw increased revenue in spite of losses in Q1 revenue due to the lockdown and closure of urban markets.
The Building Product segment’s Q4 revenue was INR 30003.72 Lakh as compared to INR 17452.17 Lakh in Q4 of last year showing an increase of 72%. Segment Profit for the quarter was INR 4471.25 Lakh as compared to INR 1000.57 Lakh in Q4 of last year showing an increase of 347%.
Total revenue from Building Products segment for the Financial Year 2020-21 was INR 100990.16 Lakh, 21% higher than the Financial Year 2019-20. Segment Profit for the full year is INR 18421.96 Lakh as compared to INR 7118.40 Lakh in FY 2019-20 showing an increase of 159%.
The Wonder Yarn business encountered two sluggish quarters (Q1 and Q2) of FY 2019-20 owing to the lockdown and the resultant slump in the domestic markets. Quarter three saw resumption of businesses as the migrant labour returned. The second half of FY 2020-21 saw healthy demand from the domestic market.
The export market continued to perform well. There is a growing traction for Sustainable Yarn, which is manufactured using discarded PET bottles. Visaka Industries Limited has recycled over 116 Million PET (Polyethylene Terephthalate) bottles which otherwise would have found their way into waste dumps and landfills.
The Yarn business Q4 revenue was INR 5414.78 Lakh as compared to INR 5318.54 Lakh in Q4 of last year showing an increase of 2%. Segment Profit for the quarter was INR 802.75 Lakh as compared to INR 746.31 Lakh in Q4 of last year showing an increase of 8%.
Total revenue from the Yarn business for the Financial Year 2020-21 was INR 13663.75 Lakh, compared to INR 21577.54 Lakh in FY2019-20. Segment profit for the Financial Year 2020-21 was INR 312.07 Lakh compared to INR 2810.5 Lakh in FY 2019-20.
ATUM, the world’s first integrated solar roof, generates electricity and is a completely integrated, seamless solar roof made with poly or mono-crystalline solar cells and cement boards – a highly durable roofing material making it world’s first solar panel which can be directly used as a roof.
FY 2020-21 was an exceptional year for ATUM as it received 20-year patents from India and South Africa. The patent was granted for the invention titled “Eco-Friendly Energy Generating Roof.” ATUM is a futuristic product and the patents have further paved the way for its geographic expansion into Asian and African markets.
Visaka Industries Limited is building its 13th manufacturing plant in Coimbatore, Tamil Nadu to produce Vnext Fibre Cement Boards. The greenfield manufacturing plant is expected to be operational by October 2021.
Taking note of the stellar performance shown by the company, the Board of Directors recommended a final dividend of 100% i.e., Rs 10 /per share on equity of share of Rs 10 each fully paid up.