Singer India maintains Double-Digit Growth in its revenue:
- EBITDA improves by 17.7%
- Revenue from operations at Rs. 482.98 crores in FY 18-19 increased by 15%.
- Profit After Tax (PAT) at Rs. 9.26 Crores in FY 18-19 marginally improved over prior year as in the Previous year there was a onetime tax benefit recorded.
- Quarter ended 31St March 2019 results show growth in Revenue by 22%.
In view of the consistent performance yet in another year the Board recommends a final dividend of Rs.0.40 per equity share of Rs. 2 each. Taking in account the interim dividend paid earlier during the year at 20%, the total dividend rate if approved will be 40% this year (compared to 37.5% Last Year).
Singer India Limited (“Singer” or the “Company”) reported its financial results for the quarter ended 31st March 2019 and the FY 18-19 prepared under Ind AS. The results continued to show improvement over the prior year both in sewing machines business and home appliances business. While there has been a consistent growth in the home appliances business ever since the Company re-entered in this business supported by volumes and new product launches, the sewing machines business which had been struggling a bit has shown improvement in the last 2 quarters of FY 19 and the Company managed to deliver a better product mix there to record growth. The Home Appliances business now accounts for 30% of the total business of the Company. Last year it was 27%.
Commenting on the FY 2019 results, Rajeev Bajaj, Managing Director, Singer India Limited noted the results show yet another a satisfactory performance and it was good to see both business verticals viz. Sewing Machines business and Home Appliances business growing. As expected, the growth rate in Home Appliances business ought to be higher due to its lower base compared to Sewing Machines Business. The Company had been investing in the Support related activities like After-sales Service, New product development and Logistics for securing a larger growth in Home Appliances in future and that is why the profitability was not reflecting a picture which it should have.
The strategy remains to improve the margins by focusing on profitable product mix and at the same time strengthening brand awareness. The Management team is working on to improve in all respects to deliver a much better performance in future years.―Equity Bulls