Demand for wood coatings was significantly impacted during the quarter primarily because of General Elections and severe heat wave across North India which delayed the ongoing recovery in the residential real estate sector and renovation activities. April and May month was quite weak as labour has gone back to their respective places due to heat wave and general elections. However we saw
gradual recovery in demand from June onwards and improvement in market sentiments which is still continuing.
Our sales has grown from INR 73 cr to 79 cr ( increase of 7% y-oy) , EBITDA has contracted from INR 17 Cr to 14 Cr ( y-oy ) and PAT has contracted from INR 13 Cr to 10.20 Cr ( y-oy ).Ebitda margin has contracted from 20% to 18% ( q-oq ) primarily due to unreasonably high one off expense in logistics cost ( 2-2.5 Cr ) of shifting our Centralised Mother Warehouse ( carrying 80% of inventory ) from existing location to a new location within a short span of time frame ( 15 days ) because of closure of chemical units in that particular area by state govt. Adjusting for this one off impact our EBITDA margins have improved from 20% to 21% ( q-q ) which is very well within our guidance range.
Our acquisition of Welcome Brand and JV with Oikos is shaping up well with our strategy of growing these 2 brands in a meaningful manner going forward. We expect these 2 segments to play a big role in Sirca’s growth story in next 3 years with a more focus on premium products and expanding our distribution network to enter into new markets and capture more market share.
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