GOCL Corp gains after Q4 PAT jumps to Rs 27 cr

GOCL Corporation rose 1.75% to Rs 273.30 after the company's consolidated net profit soared 99.1% to Rs 27.49 crore on 13.3% rise in revenue from operations to Rs 115.78 crore in Q4 March 2021 over Q4 March 2020.

Profit before tax surged 128.8% to Rs 33.57 crore in Q4 FY21 as against Rs 14.67 crore in Q4 FY20. The Q4 earnings were announced after trading hours yesterday, 29 June 2021.

In the Energetics and Explosives segment, despite the disruption of operations in the initial two months of the year due to regulatory issues and impact of COVID-19, the turnover achieved was similar to last year at Rs 96 crore. The profit before tax of Energetics segment for the year was at Rs 13.41 crore as against Rs 4.97 crore in the previous year on account of product mix changes and modernisation.

The wholly owned subsidiary, IDL Explosives (IDLEL) reported an income of Rs 343.53 crore as compared to Rs 429.12 crore of the previous year. The profit after tax of IDLEL for the year stood at Rs 4.61 crore as compared to Rs 8.20 crore in the previous year. The adverse effect was due to lower PSU tender prices, supply chain issues which have caused disruptions in the procurement of ammonium nitrate, the main raw material for the bulk explosives over 10-12 weeks.

The cumulative export sales (Energetics & IDLEL) for 2020-21 was at Rs 37.89 crore as against Rs 49.41 crore in the previous year, affected mainly by the COVID-19 pandemic in India and in the importing countries during the first half of the year. The company obtained repeat orders and added new customers from Tanzania, Djibouti and Turkey despite stiff competition from domestic and international suppliers. The firm will maintain its thrust in Exports by introducing new products and foraying into new markets in West and East Africa and new customers in the existing market, it stated. The company along with IDLEL has orders in hand of Rs 540 crore and further orders are in in the pipeline and expected to materialise over the next few months.

In the realty segment, the second wave of COVID-19 pandemic had clouded the outlook for commercial real estate sector. New lease agreements could not be finalized although, the developer is in discussions with many MNCs and Indian IT companies for lease of office space in the completed buildings in 'Ecopolis' project at Bengaluru (Karnataka). The expected demand for office space has not yet picked up as work-from-home policies gain traction. Under these circumstances, the in-principle approval received earlier for the Hyderabad (Telangana) development has not proceeded.

In its outlook, the company said that it will witness modernization of facilitates at the major plants with an efficient workforce. The new businesses in special products, electronics are gaining momentum. Additionally, the effects of the pandemic are easing with several Government interventions and stimuli which will lead to robust requirement for IT office, spaces, infrastructure and mining. "We are, therefore, optimistic as we go into the new fiscal," it said.

Meanwhile, the board has recommended a final dividend of Rs 2 per share.

During the financial year, GOCL Corporation's consolidated net profit jumped 58.68% to Rs 78.70 crore on 16.67% decline in revenue from operations to Rs 415.58 crore in FY2021 over FY2020.

Meanwhile, the board has approved the request for issue of additional collateral guarantee / security up to an amount of Rs 96.10 crore for the loans under the OTR Scheme sanctioned /to be sanctioned to Hinduja National Power Corporation (HNPCL) by a bank under the RBI Resolution Framework for COVID-19. The proposed additional collateral guarantee / security would be counter guaranteed by Hinduja Energy (lndia), the parcnt entity of HNPCL and therefore is not expected to impact the compary. GOCL Corporation would be entitled a commission/charge at 1.50% p.a. on the guarantee /security amount.

GOCL Corporation has diversified business interests. The current business activities of the company are in energetics, mining & infrastructure services, and property development.

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