Key components and precision engineered products firm, Pricol managed to deliver higher profit and revenue in Q1FY2022 on the back of new orders and cost optimisation despite acute shortage of electronic components globally.
Q1 total Income came in at Rs 306.52 crore (Q1 FY2021 total income: Rs 117.36 cr) and the company posted profit after tax (PAT) of Rs 2.41 crore in Q1FY2022, compared to Rs 28.93 crore in Q1FY2021. However, Q1FY2021 was a washout quarter with lockdown across the country to contain the spread of Covid-19.
Commenting on the company’s performance, Vikram Mohan, managing director, Pricol said, “We are going through challenging times in the automotive industry thanks to the lockdowns due to the pandemic compounded by acute shortage of electronic components globally which is taking its toll on the company’s performance. Nevertheless, with prudent cost control and continual new business wins we are confident of delivering above market growth rates and maintaining the bottom lines in spite of these challenges.”
New businesses in the electric segment is seen as the next growth trigger but Mohan believes that the headwinds in the auto industry may continue for a few more quarters, “Loss of sales due to potential further lockdowns and shortage of electronic components we believe will continue to impact the automotive industry in India for a few more quarters. But we remain bullish about the mid to long-term prospects for our company due to the new business wins especially in the electric vehicle (EV) area and growth in market share of the company.”