Shalimar Paints has reported net consolidated loss of Rs 7.03 crore in third quarter of the FY21. It had registered a loss of Rs 5.21 crore in the corresponding quarter previous fiscal, the company said in a BSE filing.
The company’s net consolidated income stood at Rs 92.55 crore in Q3 FY21, a minor dip of 1 per cent from Rs 93.58 crore it recorded in the similar quarter last year.
The production capacity of Nasik plant has been increased by 67.75% and SKBD facility by 11.53% on y-o-y basis. Chennai plant’s production capacity has dipped by 26.68% on y-o-y basis, the company said in its investor presentation.
“Revival & opening up of economy post pandemic led to normalcy in business and we have observed a V-shaped recovery in our revenues and profitability. Efficiency in operations coupled with cost rationalization programme led to an growth of 25% in EBITDA, we also anticipate that these cost rationalisation efforts are sustainable on a longer term basis. We are witnessing traction in our both segments and are optimistic about the coming quarters,” said Ashok Gupta, managing director, Shalimar Paints.
The company in its investor presentation said that it has been abled to reduce its loss by 53.66% in the FY20 in comparison to FY19 and 15.56% in comparison to FY18. It is taking all measures to become profitable.
Interest expense of the company has been reduced by 20% in FY20 in comparison to FY19 and 23.08% in comparison to FY18.
The market of Indian paints and coatings industry is expected to expand at a CAGR of 8.56% during 2019-2024, according to Equitymaster research, the company said in its investor presentation.