Himatsingka Seide Ltd. — Earnings Release 2021

Aug 27, 2020

Himatsingka �

REF:HSL/SEC/2020/43

August 27, 2020

To To The Deputy Manager The Manager Department of Corporate Services National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, Plot No. C/ 1, G Block PJ Towers, Dalal Street Bandra-Kurla Complex, Bandra (E), Mumbai -400001 Mumbai 400051 Script Code: 514043 Symbol: HIMATSEIDE

Dear Sirs,

Sub: Press Release - August 27, 2020

We are enclosing herewith Press Release dated August 27, 2020.

Please take the same on record.

Thanking you,

Yours faithfully, For Himatsingka Seide Limited Sridhar Muthukrishnan Company Secretary Encl: As above

Himatsingka Seide Limited Registered Office: 10/24 Kumara Krupa Road High Grounds, Bangalore 560 001, India T +91 Bo 2237 8000, F +91 Bo 4147 9384 E hslblr@himatsingka.com CIN L17112KA1985PLC006647 www.himatsingka.com

PRESS RELEASE Bengaluru, August 27, 2020

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Bengaluru, August 27, 2020 - Himatsingka Seide Ltd. announced its financial results for the quarter ended June 30, 2020, on August 27, 2020.

Impacted by COVID-19, Q1 FY21 Total Revenue Declines 71.6% to ₹183.29 Crores

CONSOLIDATED FINANCIAL SUMMARY – Q1 FY21

(Figures in ₹ Crores, unless mentioned )

Particulars	Q1 FY21	Q1 FY20
Total Income	183.29	644.55
EBITDA	(80.72)	143.08
EBITDA Margin (%)	NA	22.2%
EBIT	(118.66)	116.32
EBIT Margin (%)	NA	18.0%
PBT	(164.00)	72.29
PBT Margin (%)	NA	11.2%
PAT	(139.79)	45.25
PAT Margin (%)	NA	7.0%

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2020

• Consolidated Total Income for Q1 FY21 stood at ₹183.29 Crores vs ₹644.55 Crores in Q1 FY20, a decline of 71.6%.

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• Consolidated EBITDA for Q1 FY21 was a loss of ₹80.71 Crores vs a profit of ₹143.08 Crores in Q1 FY20

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• Consolidated EBIT for Q1 FY21 was a loss of ₹118.66 Crores vs a profit of ₹116.32 Crores in Q1 FY20.

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• Consolidated PBT for Q1 FY21 was a loss of ₹164.00 Crores vs a profit of ₹72.29 Crores in Q1 FY20.

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• Consolidated PAT for Q1 FY21, was a loss of ₹139.79 Crores vs profit of ₹45.25 Crores in Q1 FY20.

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PRESS RELEASE Bengaluru, August 27, 2020

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BUSINESS UPDATE

Impact of COVID-19 on Operations

• The Q1 FY21 operating performance has been severely impacted on account of COVID-19. Our manufacturing facilities at our Hassan and Doddaballapur campuses along with our distribution facilities in North America and Europe were non-operational during April and most of May, 2020. This was on account of the lockdown imposed by the Central and State Governments, respectively. Our plants commenced partial operations during the month of June, 2020. However, the operating conditions remained challenging due to supply chain disruptions and interruptions in work force availability.

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• In addition to the above, our Client mix largely comprised of retailers who did not provide essential goods and services in their respective jurisdictions and hence were either closed or operated with minimal store operations. Consequently, they either temporarily held and or postponed shipments scheduled for Q1 FY21 to later dates.

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• The 71.6% decline in Consolidated Total Revenue is essentially attributable to the above factors.

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• While we may face COVID-19 related interruptions from time to time, the ramping up of capacity utilizations across all our facilities has been progressing well during Q2 FY21.

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• On the order book front, while the Q2 FY21 order book looks healthy under the circumstances, our H2 FY21 order pipeline is robust and we remain focused to surpass pre-COVID-19 levels during H2 FY21.

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Other Business Updates

• The ramp up of capacity utilization at our new Terry Towel facility is progressing well. The utilization levels will continue to increase in H2 FY21.

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• The Company continues to increase its presence in Europe, Middle East and Asia Pacific Regions. In addition, we also remained focused on enhancing our presence on e-commerce platforms globally.

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• In order to navigate the challenges on account of COVID-19, we have undertaken several cost optimizations measures, while attempting to ramp-up operations at the earliest. In addition, we continue to have healthy cash reserves to meet challenges as the ramp-up process is underway.

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PRESS RELEASE Bengaluru, August 27, 2020

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Commenting on the Company’s performance, Mr. Shrikant Himatsingka, Managing Director & Group CEO said:

“The last few months have been extremely volatile and challenging on many fronts. While our operating performance has been severely impacted during the last two quarters, we feel the worst is behind us. The demand for home textile products is robust and we are well positioned to meet his demand by leveraging our strong manufacturing base, global brand portfolio and broad product range.”

About Himatsingka Group

The Himatsingka Group is a vertically integrated textile major with a global footprint. The Group focuses on the manufacture and distribution of home textile products. On the manufacturing front, it operates amongst the largest capacities globally for producing Bedding, Bath, Drapery & Upholstery and Yarn products. Spread across North America, Europe and Asia, the Group operates amongst the largest brand and private label portfolios in the home textile space. With a team of over 10,000 people, it continues to build capacities and enhance reach in the global textile space.

For more information, please contact:

Sachin Garg Himatsingka Seide Ltd. Phone: +91-80-42578000 Email: investors@himatsingka.com

Disclaimer:

Statements in this document relating to future status, events, or circumstances, including without limitation statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements based on commercial estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may materially differ from those anticipated in such forwardlooking statements. Himatsingka Seide Limited may, from time to time, make additional written and oral forward looking statements, including statements contained in the company’s filings with the regulatory bodies and its reports to shareholders. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors that may or may not be relevant.

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