Hisar Spinning Mills Reports Mixed Financial Results for FY 2020-21
Hisar Spinning Mills Limited reported a 34% increase in revenue to ₹2,870.72 lakhs for FY 2020-21, despite COVID-19 challenges. However, net profit declined by 26% to ₹147.24 lakhs, with EPS dropping to ₹3.94. The company managed to reduce total expenses by 6.20%. Q4 showed improvement with a 108% year-on-year profit growth. Auditors provided an unmodified opinion on the financial results.
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Hisar Spinning Mills Limited , a player in the Indian textile industry, has reported a mixed set of financial results for the fiscal year ended March 31, 2021. The company faced challenges amid the COVID-19 pandemic but managed to grow its revenue despite a decline in profitability.
Financial Highlights
| Metric | FY 2020-21 | FY 2019-20 | Change |
|---|---|---|---|
| Revenue from Operations | ₹2,870.72 lakhs | ₹2,141.49 lakhs | +34.00% |
| Net Profit | ₹147.24 lakhs | ₹198.05 lakhs | -26.00% |
| Earnings Per Share | ₹3.94 | ₹5.30 | -25.66% |
| Total Expenses | ₹2,707.38 lakhs | ₹2,886.45 lakhs | -6.20% |
Revenue Growth Amidst Challenges
Despite the challenges posed by the COVID-19 pandemic, Hisar Spinning Mills demonstrated resilience by achieving a significant 34.00% growth in revenue from operations. The company's top line increased to ₹2,870.72 lakhs in FY 2020-21 from ₹2,141.49 lakhs in the previous year.
Profitability Under Pressure
While revenue showed strong growth, the company's profitability faced headwinds. Net profit for the fiscal year 2020-21 stood at ₹147.24 lakhs, marking a 26.00% decline from the previous year's ₹198.05 lakhs. This reduction in profit led to a decrease in earnings per share from ₹5.30 to ₹3.94.
Quarterly Performance
The company's performance in the last quarter of FY 2020-21 showed signs of improvement:
- Quarterly profit: ₹78.64 lakhs (vs ₹37.80 lakhs in Q4 FY 2019-20)
- This represents a substantial year-on-year growth of 108.00% for the quarter
Operational Efficiency
Hisar Spinning Mills managed to reduce its total expenses to ₹2,707.38 lakhs from ₹2,886.45 lakhs in the previous year, indicating efforts towards operational efficiency and cost management.
Audit Opinion
The company's auditors have provided an unmodified opinion on the financial results, which adds credibility to the reported figures.
Impact of COVID-19
The management noted that the COVID-19 pandemic led to a temporary shutdown of manufacturing facilities in the previous year. This disruption makes year-over-year comparisons less straightforward and may partly explain the mixed financial results.
Looking Ahead
While Hisar Spinning Mills has shown resilience in growing its revenue, the decline in profitability highlights the challenges faced by the textile industry during the pandemic. The company's ability to manage costs and improve its bottom line in the coming quarters will be crucial for its financial health and market performance.
Historical Stock Returns for Hisar Spinning Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | -100.00% | -100.00% | -100.00% | -100.00% | -100.00% |
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