Linc Pen & Plastics Ltd Q2FY22 financial Results

New Delhi, November 29, 2021: The Board of Directors of Linc Pen & Plastics Ltd. at its meeting held on 17th November 2021 took on record the Unaudited Financial Results for the second quarter of 2021-22 ended 30^th September 2021. Linc Pen & Plastics Ltd is one of India’s most trusted writing instrument manufacturers. They have a robust domestic and international presence spreading across 50 countries and the brand is respected for producing world-class and innovative products.

Commenting on the results, Mr. Deepak Jalan, Managing Director, Linc Pen & Plastics Ltd. said:

“Despite the pandemic continuing to be a threat to the stationery and writing instruments industry, Linc grew revenues to near pre-Covid levels. The creditable factor was that the Company posted a profit before tax above the pre-Covid level despite a sharp increase in raw material (plastic granules and ball pen ink) prices. Linc moved product stocking of from stationery shops to general stores, widening distribution coverage and the possibility of impulse purchase. The Company’s inventories and debtors witnessed a decline of Rs. 880 lakh and Rs. 400 lakh respectively. Borrowings of the Company declined by Rs. 500 lakh during the quarter under review. The Company continued to focus on increasing the proportion of value-added products.”

Milestones Achieved

• Revenues were 93% of pre-Covid revenues (Q2 FY 2019-20).
• Revenues grew 71% QoQ and 46% YoY.
• Revenue rebound was despite the closure of schools, colleges and other educational institutions.
• Profit before tax was Rs. 480 lakh, surpassing the pre-Covid level of Rs. 463 lakh in Q2 FY 2019-20.
• Cash profit was Rs. 790 lakh, a YoY growth of 276%.
• The improved product mix included non-stationery items.
• We moderated operational costs, countering to some extent an increase in raw material prices.
• We focused on marketing value-added products, strengthening the product mix.
• Pentonic accounted for 40% of revenues.
• Finance cost declined from Rs. 93 lakh in Q2 FY 2020-21 to Rs. 15 lakhthis quarter.

Key Highlights

Domestic performance

• Domestic revenues of the Company increased from Rs. 4,912 lakhin Q2 FY 2020-21 to Rs. 7,647 lakh in Q2 FY 2021-22.
• The Company continued to widen its distribution network duringthe quarter under review. The number of retail outlets serviced ason 30th September, 2021 was 1.51 lakh as compared to 1.45 lakh as on 30th June, 2021
• Consumer sentiment improved on account of schools and colleges opening towards the end of the calendar year.
• The Company’s Rs. 10+ portfolio accounted for 54% of therevenues (pre-Covid 52%).

Export performance

• Exports accounted for 18.6% of our revenues during the quarter.
• Exports of theCompany grewby 13.2% YoY and40.7% QoQ.

Corporate Comm India (CCI Newswire)