By Dominick Rodrigues 

Mumbai: Pioneer Embroideries Limited (PEL), a key player in the Specialized Polyester Filament Yarn (SPFY) and Embroidery & Laces segment in India, shook off pandemic-affected losses by reporting a strong set of numbers for its Q4 of FY2021. 

The Company recovered from its pandemic-affected loss of first quarter, with an impressive Q4, FY21: PAT (before deferred tax) improved 5 times, to Rs 80 million over the corresponding period last year 

Highlighting the company’s good performance, Harshvardhan Bassi, Managing Director, Pioneer Embroideries Limited said the company – like its peers – was hit by the pandemic at the beginning of FY21, but quickly geared itself up to face the challenge. “The impressive growth in profitability came as a result of much-improved operating performance and lower financial cost,” he said while expressing confidence of sustaining the company’s performance in the times to come. 

While PEL’s Total Income for 12M FY21 declined by 5% to Rs 2,278 million, overall exports increased by 24% to touch Rs 444 million. EBITDA for FY2021 stood at Rs 294 million (at margin of 12.9 %) — a substantial increase of 41% over the previous year figure of Rs 209 million (at margin of 8.7%). “The improvement was primarily driven by strong performance of its SPFY business, where PEL has positioned itself as a niche player,” Bassi noted. 

Secured borrowings fell to its lowest-ever level in recent years to Rs 298 million including Rs 116 million of working capital funds, which helped the company to reduce its financial cost by 27% to Rs 45 million.  

Meanwhile, the Company generated ‘one of its highest-ever’ yearly operational cash profit of about Rs 250 million — up from Rs 170 million in the previous year. PEL has proposed a dividend of Rs 0.25 per share for shareholders, after a gap of several years, a release stated.