Pricol outpaces market with strong FY21 performance

Vikram Mohan, Managing Director, Pricol Limited

Pricol, one of India’s leading automotive component and precision engineered product manufacturers, has announced its annual results for the year ended March 31, 2021. For FY21, the Coimbatore-based supplier’s total income stood at Rs. 1397.81 cr. as against Rs. 1212.96 cr. in FY20. Revenue from operations for the year stood at Rs. 1336.15 cr. as compared to Rs. 1139.05 cr. in FY20. The company’s Profit Before Tax (PBT) was Rs. 46.52 cr. for FY21 as compared to a loss of Rs. 216.72 cr. in FY20. For FY21, Profit After Tax (PAT) stood at Rs. 14.60 cr. in FY21 as against a loss of Rs. 212.88 cr. the previous fiscal.

In Q4 FY21, Pricol’s total Income stood at Rs. 438.19 cr. as against Rs. 286.88 cr. in the corresponding quarter in FY20. Revenue from operations for the quarter of FY21 stood at Rs. 420.94 cr. as compared to Rs. 263.39 cr. in Q4 of FY20.

Commenting on the company’s performance, Vikram Mohan, Managing Director, Pricol Limited, said, “Our results are in line with our expectations and an outcome of our sustained efforts to reduce costs, increase productivity and enhanced market share for our products. 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. The impact of the first wave of Covid-19 and the subsequent lockdown had a major impact on the company’s performance in Q1 FY 21. Whilst we were able to bounce back very strongly; steep increase in commodity prices had an impact on the EBITDA of the company in Q4 FY 21. 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 ICs in Q4 FY 21. Nevertheless, we remain bullish about the long-term prospects for the company since we have heavily invested in technology and in capacity building in the prior years compounded by the efforts on increasing efficiency and productivity, as well as thrust on exports has helped the company launch new products and increase its market share and this will have a favorable long-term impact once the pandemic is brought under control.”