Banking on new business and cost control, auto component maker Pricol showed a spike in revenue for the January-March quarter after two successive years of loss. Revenue for the quarter improved 60% year-on-year to Rs 4.21 billion and the EBITDA improved 50% to Rs 0.57 billion. The growth is attributed to increase in automotive sales. The company reported a net profit of Rs 0.03 billion. There was a loss of Rs 1.21 billion last year. According to Vikram Mohan, Managing Director, Pricol Limited, the growth for FY 21 has been higher than the growth of the corresponding segments of the market. He added that the growth was mainly due to the introduction of new products and increased share of business from their customers due to sustained performance and cost control. He also said that the sharp increase in commodity prices eroded the company’s margin during the quarter.
He stated that the company is highly dependent on import of electronic child parts and the global shortage of ICs (integrated circuits) resulted in higher raw material prices and loss of production.
For the complete fiscal year ending in March, Pricol reported a profit of Rs 0.15 billion against a loss of Rs 2.13 billion in FY20.
Source: ET Auto.com
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