Pioneer Embroideries Reports Q1 Results: Profit Surge Amid Revenue Decline
Pioneer Embroideries Limited reported a significant increase in net profit for Q1 ending June 30, despite a decline in revenue. Standalone net profit rose to ₹107.78 lakh from ₹21.81 lakh year-over-year, while net sales decreased to ₹8,590.74 lakh from ₹9,588.19 lakh. The profit boost was largely due to exceptional gains of ₹441.80 lakh from asset sales at Naroli. The company moved its manufacturing operations to a new unit at Degoan, Dhule. On a consolidated basis, net profit attributable to owners increased to ₹106.77 lakh from ₹20.50 lakh.
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Pioneer Embroideries Limited, a key player in the textiles segment, has released its financial results for the first quarter ending June 30. The company reported a significant increase in net profit despite a decline in revenue, largely attributed to exceptional gains from asset sales.
Financial Highlights
- Net Profit: The company's standalone net profit surged to ₹107.78 lakh, compared to ₹21.81 lakh in the same quarter of the previous year, marking a substantial year-over-year increase.
- Revenue: Net sales declined to ₹8,590.74 lakh from ₹9,588.19 lakh year-over-year, indicating a decrease in top-line performance.
- Exceptional Gains: The company recorded exceptional gains of ₹441.80 lakh, primarily from the sale of land and building assets at Naroli.
Key Financial Metrics
| Particulars (₹ in lakh) | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Net Sales | 8,590.74 | 9,588.19 | -10.40% |
| Net Profit | 107.78 | 21.81 | 394.18% |
| Exceptional Gains | 441.80 | - | - |
Operational Highlights
- The company's manufacturing operations were moved to a new unit at Degoan, Dhule, following the sale of assets at Naroli.
- An expense of ₹207.61 lakh was recognized related to prior year liability, partially offsetting the gains from asset sales.
Consolidated Performance
On a consolidated basis, the net profit attributable to owners increased to ₹106.77 lakh, up from ₹20.50 lakh in the previous year's quarter.
Management Commentary
Harsh Vardhan Bassi, Managing Director of Pioneer Embroideries Limited, stated in the company's filing, "The Board of Directors has approved the unaudited standalone and consolidated financial results for the quarter ended June 30. The exceptional gains from asset sales have significantly boosted our profitability this quarter, despite the challenges in revenue."
Company Overview
Pioneer Embroideries Limited operates primarily in the textiles segment, with subsidiaries including Hakoba Lifestyle Limited, Pioneer Realty Limited, and Crystal Lace (India) Limited. The company's focus remains on its core business operations while optimizing its asset portfolio.
Historical Stock Returns for Pioneer Embroideries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.28% | -3.47% | -7.73% | -11.63% | -31.56% | +63.14% |
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