Listed companies have announced their performance results for the quarter from October to December 2020. Having gone through a torrid time since the start of the financial year in April, most firms’ results show signs of a definite upturn in demand, with some clocking record revenues during the quarter. We bring you the figures of some of the top brands in the industry.
Apollo Tyres – Q3 FY21
The Board of Directors of Apollo Tyres Ltd. stated that the company has delivered strong revenue and profit growth with robust recovery seen across segments. Its consolidated sales for October to December 2020 closed at Rs. 4,965 crore. The sales for the nine months of April to December of FY21 closed at Rs 12,027 crore. Sales for Indian operations grew 20% on the back of improved demand from both OEM and replacement segments. In Europe, the company continued to make inroads in the premium segment. As compared to Q3 of FY 2019-20, sales grew 14% to close at Rs 4,965 crores as against Rs 4,347 crore, operating profit was up 91% at Rs 1,053 crore in comparison to Rs 551 crore and net profit grew 155% to close at Rs 444 crore as against Rs 174 crore in the same period last fiscal.
Commenting on the company’s performance, Onkar Kanwar, Chairman, Apollo Tyres, said: “Our performance across geographies has been robust in the past quarter and we continue to be extremely positive on the demand environment. Given our planned investments in capacity, research and development, brand and distribution, along with our cost optimisation programme, we are extremely well-placed to leverage demand recovery across segments and geographies. Also, the Indian government turning to expansionary mode in the FY22 budget with a clear focus on growth, and the announcement on scrappage policy, is going to be a boost for us going forward.”
HPCL – Q3 FY21
For Q3 20-21 HPCL has recorded stellar performance in a challenging environment. This was in the face of the international oil market facing an unprecedented volatile environment in 2020, impacted massively by the pandemic, restrictions imposed during consequent lockdowns and the resultant demand collapse. Subsequent relaxations announced by concerned authorities helped in quarter-on-quarter improvement in demand with December 2020 recording highest consumption of petroleum products in the last 11 months i.e. after January 2020. The aggregate demand of petroleum products for the period April – December 2020 reached 88% of the demand for the same period last year.
During October-December 2020, the domestic sales of petroleum products of HPCL increased to 10.03 million metric tonnes, registering a growth of 2.7% over the corresponding quarter of previous year compared to industry growth of 0.30%. The sales of MS (petrol) increased by 6.4%, HSD (diesel) by 1.2% and LPG by 5.9%. While the growth rates of HSD and LPG were higher than the industry average, the growth of MS was at par with the industry. Other industrial products like bitumen and naphtha also witnessed growth of 18.3% and 14.60%, respectively, over the corresponding period of the previous financial year. Total domestic sales of petroleum products of HPCL during the period April – December 2020 were 25.4 million metric tonnes against 28.5 million metric tonnes during the corresponding period of 2019-20.
HPCL achieved an overall combined capacity utilisation of over 100% at its refineries by optimizing day-to-day crude run rate and regulating the product procurements from other sources during such challenging times. The refinery throughput for the quarter October – December 2020 was 4 million metric tonnes compared to 4.16 million metric tonnes during the corresponding period of last year. HPCL refineries processed 12.03 million metric tonnes of crude during April – December 2020 as against 12.64 million metric tonnes during the same period last year. HPCL is the largest exporter of lubricants among OMCs for April – December 2020. Total 11.3 TMT of lubes were exported during the period.
JK Tyre and Industries – Q3 FY21
JK Tyre and Industries Ltd. has announced record financials for the third quarter of the current financial year. The company’s consolidated sales at Rs. 2,776 crore grew 26%, the best-ever sales for any quarter. Commenting on the results, Dr. Raghupati Singhania, Chairman, said, “JK Tyre and Industries turned out an excellent performance in Q3 in terms of sales and profitability. This was largely driven by the increased demand for passenger, commercial vehicle as well as farm tyres. Continued focus on improvement in operating efficiencies and reduction in interest costs contributed to improved profitability.”
“All the nine plants in India operated at close to 96% capacity utilisation during Q3. It is a matter of satisfaction that some of the plants have achieved certain global benchmark operating parameters,” he added. Cavendish Industries Ltd., a JK Tyre and Industries’ subsidiary, also recorded excellent results in Q3 of 2020-21. Capacity utilisation at its three plants was nearly 95%. Cavendish achieved sales of Rs. 788 crore and attained an all-time high PBT of Rs. 92 crore during the quarter under review. Besides, the company’s subsidiary in Mexico, JK Tornel, continued to perform well, marked by a significant improvement in sales and profitability. The company foresees sustained sales and profitability during the coming period.
Carborundum Universal – Q3 FY21
Carborundum Universal
The Board of Directors of Carborundum Universal Ltd. approved the results for the quarter and nine months ended December 31, 2020 and revealed that consolidated sales for the quarter increased by 13% to Rs 727 crore from Rs 642 crore of the same quarter last year, driven by steady performance across segments. At the standalone level, sales were higher by 20%. On a consolidated basis, segmental profitability for the quarter recorded strong growth across all the business segments. Profit after tax and non-controlling interest grew by 40% to Rs 87.7 crore as compared to Rs 62.8 crore last year. The capital expenditure incurred during the nine-month period was Rs 77 crore. The debt equity ratio was at 0.02 as of December 2020.
In abrasives, segment revenue for the quarter at a consolidated level increased to Rs 303 crore compared to Rs 263 crore during the corresponding period of last year. Standalone abrasives grew from Rs 217 crore to Rs 253 crore. Profit before finance costs and tax increased to Rs 50 crore from Rs 31 crore on the back of better margins and product mix. In the electro minerals’ segment, revenue at a consolidated level was higher at Rs 290 crore versus Rs 244 crore from the same quarter of last year.
Castrol India – Q4 2020
Announcing the Q4 (October – December) and FY 2020 (January – December) financial results, Castrol India’s Managing Director Sandeep Sangwan said that the company has delivered a resilient financial performance for FY 2020 in a difficult year marked by the pandemic and ensuing external challenges. “The year 2020 has been a story of two halves. While we continued with our priorities through the year, keeping the safety and wellbeing of our people and supporting communities we operate in at the fore, we gained good momentum in the second half with the partial revival of demand. In H2 2020, revenue improved by 54% at Rs 1,818 crore while profit from operations was 122% higher at Rs 501 crore versus H1 2020,” he added.
“In Q4 2020, we continued to invest in our key brands with a significant increase in our marketing and advertising spends year-on-year – Rs 65 crore in Q4 2020 versus Rs 11 crore in Q4 2019 – which helped in achieving a top-line growth of 6% versus Q3 2020. We expect the positive impact of this investment to continue going forward. We have also taken actions to prepare the business for growth in the future, including corrective pricing actions for our commercial vehicle portfolio which has yielded double-digit volume growth in the last quarter as well as inventory reduction for distributors to help improve their working capital,” Sangwan informed.
Wheels India – Q3 FY21
Wheels India Ltd. has registered a 30.4% rise in its net profit for the third quarter ended December 31, 2020 at Rs 12 crore as compared to Rs 9.2 crore registered in the comparative period of the previous year. Revenue for Q3 went up by 9.8% to Rs 640 crore from Rs 583 crore registered in the same period last year. The company exports around 20% of its sales and has a diversified customer base with over 40 customers globally. In Q3, the company began its first shipment of cast aluminium wheels to the US from its newly commissioned plant in Thervoy Kandigai. Commenting on the performance in Q3, Managing Director Srivats Ram said, “We have seen a decent performance in all segments other than CV (bus, in particular) and railways.”
“The tractor and construction equipment segment saw strong demand. We have been able to grow our exports reasonably in this period,” he added. On the outlook, Srivats said, “We expect the momentum we have in exports to continue although there is some concern due to the escalation in commodity prices.” Wheels India Ltd. is a leading manufacturer of steel wheels for trucks, buses, agricultural tractors, construction equipment, utility vehicles and passenger cars. The company has manufacturing plants at Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand with a combined overall annual capacity of 10.3 million wheels.
Sundaram Finance – Q3 FY21
Sundaram Finance
Chennai-headquartered non-banking finance company Sundaram Finance Ltd., has registered a 45% rise in its net profit for the quarter ended December 31, 2020 at Rs 242 crore as compared to Rs 167 crore registered in the corresponding period last year. Disbursements for Q3 ended December 31, 2020 went up 8.5% to Rs 4,307 crore as compared to Rs 3,968 crore for the Q3 ended December 31.2019. Net income for Q3 went up 7% to Rs 1,045 crore from Rs 976 crore registered in the same period last year. Assets under management stood at Rs 31,226 crore compared to Rs 30,502 crore last year. Net NPAs (Stage III) stood at 1.59% (2.79%) as on December 31, 2020.
Commenting on the performance in Q3, Managing Director T T Srinivasaraghavan said, “Compared to the scenario in the first two quarters of the year, Q3 saw a revival in most of our business segments, except medium and heavy commercial vehicles. Passenger cars, tractors and construction equipment segments did particularly well in Q3. With the strong infrastructure push announced in the budget, we expect the growth momentum to pick up in the next few quarters.” Incorporated in 1954, Sundaram Finance has an all-India presence with 588 branches. The fixed deposits and long-term borrowings of SFL are rated AAA by CRISIL and ICRA.
Sundram Fasteners – Q3 FY21
Sundram Fasteners Limited has registered its highest-ever standalone and consolidated net profit at Rs 124.24 crore and Rs 143.70 crore, respectively, for the third quarter of the financial year 2020-2021. The revenue from operations was at Rs 942.20 crore for the quarter ended December 31, 2020 as against Rs 692.80 crore during the same period in the previous year – a growth of 36%. Domestic sales for the quarter ended December 31, 2020 were at Rs 637.01 crore as against Rs 446.05 crore during the previous year, a growth of 42.8% on the back of increase in domestic demand. Export sales for the quarter were at Rs 277.20 crore as against Rs 224.18 crore, an increase of 23.7%.
The company’s domestic and overseas’ subsidiaries have registered an impressive performance during the quarter ended December 31, 2020. Its consolidated revenue from operations posted for the quarter was at Rs 1,108.69 crore as against Rs 822.50 crore during the same period in the previous year, an increase of 34.8%. The consolidated net profit for the quarter was at Rs 143.70 crore as against net profit of Rs 104.92 crore during the same period in the previous year, an increase of 37%, which is the highest ever consolidated net profit recorded in a quarter.
Talbros Automotive Components – Q3 FY21
Talbros Automotive Components Limited, has announced its unaudited financial results for the quarter ended 31st December 2020. The company’s total income from operations stood at Rs.132.1 crores in Q3 FY21, clocking a 35.6% growth compared to Rs. 97.4 crores in Q3 FY20. The company has continued momentum of achieving double-digit revenue growth on a sequential basis.
During the quarter, the company entered in a technical assistance agreement with its Japanese partner ‘Sanwa Packing Industry Co. Ltd’ for lightweight aluminum heat shields for Indian markets.
Commenting on the performance, Anuj Talwar, Joint Managing Director, Talbros Automotive Components, said, “We have grown faster than the Industry. We are moving towards the road of evolution gradually. From 20% exports in FY20, we have reached 24% level in current fiscal. We aim to increase export to 30% in next 5 years. We appreciate measures taken by Government to support the industry. PLI scheme will add up to our margins with increased exports. Long awaited scrappage policy for government and PSUs and addition of voluntarily scrappage of vehicles for private sector will boost up the demand of automobiles. We have vast experience in exports, and our technological partnerships are adding up marquee clientele to our portfolio. We remain positive on our path to recovery with addition of multiyear orders to our company.”