Q4 Financial Results | Linc Pen & Plastics Ltd.

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Kolkata, West Bengal, 30th May 2022: Linc Limited (Formerly Linc Pen & Plastics Limited), one of the most trusted names in the writing instruments business, announced its Q4FY22 and FY22 results today. The Board of Directors of Linc Limited at its meeting held on 30th May 2022 took on record the Audited Financial Results for the fourth quarter of 2021-22 ended 31st March 2022. They have a robust domestic and international presence spreading across 50 countries and the brand is respected for producing world-class and innovative products.

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 ₹ Lacs
Financial SummaryQ4FY22Q4FY21YoY%Q3FY22QoQ%FY22FY21YoY%
Total Income11,2169,49018.2%9,57517.1%35,78425,81238.6%
Gross Profit2,5362,16817.0%2,4164.9%8,4415,75346.7%
Gross Profit Margin22.9%23.1%-0.8%25.3%-9.5%23.8%22.4%6.1%
EBITDA745766-2.7%7144.4%2,4411,163109.9%
EBITDA Margin6.7%8.2%-17.5%7.5%-10.0%6.9%4.5%51.8%
PAT299620-51.7%2797.4%8134NA1

1. Considered NA as PAT in FY 21 is too small

Commenting on the results, Mr. Deepak Jalan, Managing Director, Linc Limited said:

“I am happy to state that the company has shown strong top-line growth in the last quarter of FY22. In spite of schools & colleges remaining closed most of the time last year, we were able to achieve over 89% of pre-covid level Income in FY22. In fact, our Income for Q4 FY 22 amounting to ₹11,216 lacs surpassed pre-covid Income of ₹10,093 lacs in Q4 FY 20. With schools and colleges now operating at full capacities, we expect strong growth in demand for our products over the next few years. During the quarter, the company witnessed a sharp increase in input costs, led by the unprecedented rise in crude & polymer prices. While the company was able to absorb some part of the cost increase due to a higher mix of ‘Pentonic’ in the revenue basket, margins did get impacted and gross profit margin (GPM) fell by 18 basis points YoY and 241 basis points sequentially. EBITDA margin also fell YoY and QoQ due to lower GPM, significantly higher freight rates and higher marketing & new customer acquisition costs, as the company restarted its marketing efforts on the re-opening of schools and colleges. Commodity prices are expected to soften, and we believe that prices should stabilize in the coming quarters. This along with our continued focus on higher-margin products should help us in improving our margins and profitability. Our relentless focus on increasing sales touchpoints also continues as we added over 50,000 touchpoints in this quarter. We are very happy to announce that the Board of Directors have proposed a dividend of 18%, thus continuing our tradition of over 30% dividend pay-out.”

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Milestones Achieved

·         Total Income:

·         ₹35,784 Lacs in FY22, registering a growth of 38.6% from FY21

·         Share of ‘Pentonic’ increased to 25.5% in FY22 as against 20.0% in FY21

·         Gross Profit:

·         ₹8,441 Lacs in FY22, up 46.7% from FY21 & Gross Margin was at 23.8%

·         EBITDA:

·         ₹2,441 Lacs in FY22, up 109.9% & EBITDA Margin was at 6.9%

·         PAT:

·         ₹813 Lacs in FY22 against ₹4 lacs in FY 21

·         EPS stood at ₹5.47 in FY22 vs ₹0.03 in FY21

·         Net Debt:

·         ₹290 Lacs vs. ₹797 Lacs (March 2021); reduction of ₹508 Lacs

·         Net Debt / EBITDA improved further to 0.12 from 0.69 in March 2021. It stood as high as 2.43 in March 2018

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About Linc Limited

Linc Limited is one of India’s most trusted Writing Instrument brands with a national and international presence in over 50 countries. Linc is considered among the top pen companies in India with a constant endeavour to bring out new innovative pens with innovative technologies and packaging. Established in 1976 by Mr. Suraj Mal Jalan, Linc is currently headed by Mr. Deepak Jalan, Managing Director. We have our manufacturing units in Serakole, Umbergaon, and Falta, with a daily capacity of more than two million units with ISO 9001:2008 certification, guaranteeing top quality products. Linc has an exclusive license to distribute and market Uniball products. It is listed on NSE, BSE, and CSE. Linc is a dynamic company addressing the growing needs of the second-most populous country; it is a global organization striving to achieve greater heights through sustainable growth over the years.