LINC LIMITED — Earnings Release 2020

Jul 8, 2020

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8[th] July, 2020

The Listing Department,The Calcutta Stock ExchangeLtd.7, Lyons Range,Kolkata - 700001	The ManagerThe Department of CorporateServices,BSE Limited, P. J. Towers,Dalal Street,Mumbai - 400001	The Manager,The Listing Department,National Stock Exchange of IndiaLimited, Exchange Plaza,Bandra Kurla Complex,Bandra (East),Mumbai - 400051

Dear Sir,

Re : Press Release

Please find enclosed herewith the Press Release relating to the Financial Results for the quarter / year ended 31st March, 2020.

Thanking You,

Yours faithfully,

For LINC PEN & PLASTICS LTD.

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N. K. Dujari Chief Financial Officer & Company Secretary

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Press Release

Salient Points on Financial Results for Quarter / Year Ended 31.03.20

		Q4 - 19-20	Q4 - 18-19	Increase /(Decrease)
Total Revenue (Net)	Rs. In Lacs	10,093	10,623	(5.0%
Exports	Rs. In Lacs	2,107	3,033	(30.5%)
ProfitAfter Tax(PAT)	Rs. in Lacs	498	64	678.1%
PAT(as % of Revenue)	In %	4.9%	0.6%	430 bps
EBITDA(in %)	In %	11.0%	7.0%	400 bps

		FY-19-20	FY-18-19	Increase /(Decrease)
Total Revenue(Net)	Rs. In Lacs	40,000	36,694	9.0
Exports	Rs. In Lacs	7,848	8,848	(11.3)
ProfitAfter Tax(PAT)	Rs. In Lacs	1925	515	273.8%
PAT(as % of Revenue)	In %	4.8%	1.4%	340 bps
EBITDA(in %)	In %	10.3%	6.9%	340 bps

In FY20 Net profit saw a near 274 per cent jump to Rs 1925 Lakhs, EBITDA margins improved to 10.3 per cent, yearly expansion of 340 basis points, primarily on account of better product mix and slight moderation in polymer prices.

Update on FY21

In FY21, April and May sales have been a washout because of the lockdown. In June, the company saw sales come back at more than 50 per cent levels of what it had reported in the same month last fiscal (June 2019).

According to Deepak Jalan, MD, Linc Pen & Plastics, “while there was pent-up demand in June, the first full month of operations since unlocking began, it is too early to envisage the levels of demand picking up. Schools and colleges remain closed and exams have been postponed. We saw some pent-up demand in June. There is still uncertainty in the market (about schools and colleges reopening), we can end up with at least 70-80 per cent of last year’s sales for FY21.

Resumption of offices could see some additional traction for stationery items. Online sales though have more than doubled; and, gifting categories are gaining traction too.

All its three factories – one in Gujarat and two in Bengal – are operational at 60-70 per cent levels.

The Company is planning to expand distribution beyond the 70,000-odd stationery shops, where its offerings are available. This will be done to partially offset loss in sales through these stores. A consultant has been roped-in and pilot projects had begun before the lockdown.

Linc is also targeting kiranas and mom-and-pop stores with a set of pens under Pentonic brand (launched in FY19). The brand has been amongst the highest contributors in terms of value (and margins) to Linc’s overall portfolio. This will help the Company to recover some sales volumes

-:o:-