Heranba Industries stocks plunges 5% despite strong Q4 results

Heranba Industries Ltd., one of India’s leading Synthetic Pyrethroids and its intermediates manufacturer in India, has announced its financial results for the fourth quarter and full-year ended March 31st, 2021.

Financial Highlights for Year Ended March 31st, 2021:

• Total Income at Rs1225.67cr in FY21 as compared to Rs967.90cr in FY20 – growth of 26.63% yoy.

• EBITDA(incl. Other Income) at Rs228.36cr in FY21 as compared to Rs145.88cr in FY20 – growth of 56.54% yoy.

• EBITDA(incl. Other income) Margins were at 18.74% in Q4FY21 as compared to 15.33% in Q4FY20 – growth of approx. 341bps.

• Profit After Tax at Rs154.226cr in FY21 as compared to Rs97.657cr in FY20 – growth of 57.93% yoy.

• Earnings Per Share (Diluted) was Rs39.41 in FY21 as compared to Rs25.00 in FY20 – growth of 57.64% yoy.

• Cash and Cash equivalent stood at Rs84.780cr in FY21.

• Company announced dividend of Rs0.70 per share i.e 7% of Face value Rs10 each in FY21.

Financial Highlights for Quarter Ended March 31st, 2021:

• Total Income at Rs273.175cr in Q4FY21 as compared to Rs229.525cr in Q4FY20 – growth of 19.02% yoy.

• EBITDA(incl. Other income) at Rs63.04cr in Q4FY21 as compared to Rs41.29cr in Q4FY20 – growth of 52.67% yoy.

• EBITDA(incl. Other income) Margins were at 23.54% in Q4FY21 as compared to 19.33% in Q4FY20 – growth of approx. 421bps.

• Profit After Tax at Rs43.19cr in Q4FY21 as compared to Rs26.26cr in Q4FY20 – growth of 64.48% yoy.

Raghuram K. Shetty, Managing Director of Heranba Industries Limited, commented, “We are pleased to report a robust performance in a rather challenging year. HIL grew its total income to 12,256 million, delivering a growth of 26.63%, this was supported by healthy performance in our overall product mix. The Company has also broken ground for its new CAPEX at Unit in Vapi, commercial production for which is expected to commence by Q3FY22.

In addition, HIL has also acquired an industrial shed to enhance production capacity and upgrade its environmental pollution control facilities at Unit-2. This give us confidence in our future outlook for the Company, and we are confident on building on this growth trajectory as we move forward.”