 "Butterfly Gandhimathi Appliances rallies 45% in a week on strong Q4 results")
Shares of Butterfly Gandhimathi Appliances soared 19 per cent to Rs 923.85 on the BSE in intra-day trade on Monday. The stock has now rallied 45 per cent in the past one week, after the household appliances company reported a profit after tax (PAT) of Rs 9.9 crore in March quarter (Q4FY21), on the back of healthy revenue growth. The company had posted a net loss of Rs 7.6 crore in Q4FY20.
The company reported strong revenue growth of 86.4 per cent year on year (YoY) to Rs 206.20 crore in Q4FY21. The healthy growth was on the back of enhanced customer interest in kitchen appliances due to accentuated preference for home cooked food.
In Q4FY21, the gross margin was continuously healthy at 41.1 per cent, in spite of increase in prices of raw material and components. In Q4FY20, gross margin stood at 44.6 per cent. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved to 6.9 per cent from -3.6 per cent in the previous year quarter, because of operating leverage.
The company said that relentless focus on improving Branded business debtors days have now started yielding results, which stood 30 days in FY21 against 61 days in FY20. The measures driving the improvement includes the real time inventory tracking at distributor and dealer level as resulted in streamlining of channel inventory. This has helped in increasing ROI for distributors and reduction in debtors for the Company. Lower share of gas dealer channel business; 6 per cent currently as compared to 30 per cent 3 years ago, it said.
Butterfly Gandhimathi Appliances expected revenue growth of around 10 per cent to 15 per cent and Ebitda margin expansion of 25 basis points in FY22 over FY21.
At 10:54 am, the stock was trading 9 per cent higher at Rs 843 on the BSE, as compared to 0.42 per cent gain in the S&P BSE Sensex. The trading volumes on the counter jumped over four-fold with a combined around 800,000 equity shares changing hands on the NSE and BSE.
The company reported strong revenue growth of 86.4 per cent year on year (YoY) to Rs 206.20 crore in Q4FY21. The healthy growth was on the back of enhanced customer interest in kitchen appliances due to accentuated preference for home cooked food.
In Q4FY21, the gross margin was continuously healthy at 41.1 per cent, in spite of increase in prices of raw material and components. In Q4FY20, gross margin stood at 44.6 per cent. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved to 6.9 per cent from -3.6 per cent in the previous year quarter, because of operating leverage.
The company said that relentless focus on improving Branded business debtors days have now started yielding results, which stood 30 days in FY21 against 61 days in FY20. The measures driving the improvement includes the real time inventory tracking at distributor and dealer level as resulted in streamlining of channel inventory. This has helped in increasing ROI for distributors and reduction in debtors for the Company. Lower share of gas dealer channel business; 6 per cent currently as compared to 30 per cent 3 years ago, it said.
Butterfly Gandhimathi Appliances expected revenue growth of around 10 per cent to 15 per cent and Ebitda margin expansion of 25 basis points in FY22 over FY21.
At 10:54 am, the stock was trading 9 per cent higher at Rs 843 on the BSE, as compared to 0.42 per cent gain in the S&P BSE Sensex. The trading volumes on the counter jumped over four-fold with a combined around 800,000 equity shares changing hands on the NSE and BSE.
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