TCNS Clothing Co. Q4 shows net profit of Rs3.87cr thanks to significantly lower material costs

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TCNS Clothing Co. reported stable consolidated gross revenue of 0.86% for the March 21 quarter at Rs221.09cr. On a sequential basis, net sales revenue was down -7.07% from total revenue for the December 20 quarter to Rs237.90cr.

FY21 fiscal year revenue was -44.6% lower at Rs636cr. The company was directly affected by its textile business due to the lockdown of the previous year and was also affected due to supply chain constraints. However, working capital has been better managed to handle lower volumes.

The net profit on March 21 turned into a profit of Rs 3.87 crs against a net loss of Rs 23.77 crs in the March 20 quarter. The recovery in profits is explained by the sharp drop in material costs, as the company quickly adjusted its working capital requirements with the decline in turnover.

This contributed to the recovery in net income despite lower revenues. Net margins at 1.75% in the March 21 quarter were lower than 5.32% in the sequential December 20 quarter due to higher payroll taxes. Other income for the March 21 quarter includes Rs14.88cr in the form of rent concessions and other adjustments.

Financial Highlights for March 21 compared YoY and Sequentially

TCNS Clothing Ltée
Rs in crore Mar-21 March 20 YEAR Dec-20 QOQ
Total income (Rs cr) 221.09 219.21 0.86% 237 237.90 -7.07%
Net profit (Rs cr) 3.87 -23.77 -116.28% 12.66 -69.43%
Diluted EPS (Rs) 0.60 -3.71 2.12
Net margins 1.75% -10.84% 5.32%

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