November 23, 2024 05:12 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
'Third World War has begun:' Ex-Ukraine military commander-in-chief Valery Zaluzhny | UK-India Free Trade Agreement negotiations to resume in early 2024 | UK can arrest Benjamin Netanyahu if he visits country based on ICC warrant | Centre to send over 10,000 additional soldiers to violence-hit Manipur amid fresh violence | Chhattisgarh: 10 Maoists killed during encounter with security forces in Sukma
Linc Pen & Plastics Ltd Q2FY22 financial results
Linc Pens & Plastics

Linc Pen & Plastics Ltd Q2FY22 financial results

| @indiablooms | 19 Nov 2021, 01:37 am

Kolkata/IBNS: Linc Pen & Plastics Ltd. posted a 46 percent year-on-year and 71 percent quarter-on-quarter increase in revenue for the quarter  ended September 30. The growth in revenues was 93 percent of pre-Covid levels of Q2 FY 2019-20 despite the closure of schools, colleges and other educational institutions.

Highlights of the financial result:

● Revenues were 93 percent of pre-Covid revenues (Q2 FY 2019-20).
● Revenues grew 71 percent QoQ and 46 percent YoY.
● Revenue rebound was despite the closure of schools, colleges and other educational institutions.
● Profit before tax was Rs. 480 lakh, surpassing the pre-Covid level of Rs. 463 lakh in Q2 FY 2019-20.
● Cash profit was Rs. 790 lakh, a YoY growth of 276 percent.
● The improved product mix included non-stationery items.
● We moderated operational costs, countering to some extent an increase in raw material prices.
● We focused on marketing value-added products, strengthening the product mix.
● Pentonic accounted for 40 percent of revenues.
● Finance cost declined from Rs. 93 lakh in Q2 FY 2020-21 to Rs. 15 lakh this quarter.

Domestic performance

● Domestic revenues of the Company increased from Rs. 4,912 lakh in Q2 FY 2020-21 to Rs. 7,647 lakh in Q2 FY 2021-22.
● The Company continued to widen its distribution network during the quarter under review. The number of retail outlets serviced as on 30th September, 2021 was 1.51 lakh as compared to 1.45 lakh as on 30th June, 2021
● Consumer sentiment improved on account of schools and colleges opening towards the end of the calendar year.
● The Company’s Rs. 10+ portfolio accounted for 54 percent of the revenues (pre-Covid 52 percent).

Export performance
● Exports accounted for 18.6 percent of our revenues during the quarter.
● Exports of the Company grew by 13.2 percent YoY and 40.7 percent QoQ.

Commenting on the results, Deepak Jalan, Managing Director, Linc Pen & Plastics Ltd. said: “Despite the pandemic continuing to be a threat to the stationery and writing instruments industry, Linc grew revenues to near pre-Covid levels. The creditable factor was that the Company posted a profit before tax above the pre-Covid level despite a sharp increase in raw material (plastic granules and ball pen ink) prices.'

Linc moved product stocking of from stationery shops to general stores, widening distribution coverage and the possibility of impulse purchase.

The Company’s inventories and debtors witnessed a decline of Rs. 880 lakh and Rs. 400 lakh respectively.

Borrowings of the Company declined by Rs 500 lakh during the quarter under review. The Company continued to focus on increasing the proportion of value-added products.”

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.