Pioneer Embroideries, a specialised polyester filament yarn producer, reported that its net profit increased five times in the March quarter to ₹10 crore against ₹2 crore logged in the same period last year, due to tight cost control and deferred tax write back of ₹3 crore.

Income in the quarter under review was up at ₹81 crore (₹52 crore).

The company has proposed a dividend ₹0.25 per share to its shareholders.

Secured borrowings fell to its lowest-ever level in recent years to ₹30 crore including ₹17 crore of working capital, which helped the company to reduce its financial cost by 27 per cent to ₹4 crore, said the company.

Harshvardhan Bassi, Managing Director, Pioneer Embroideries said the company was hit by the pandemic at the beginning of FY21, but quickly geared up to meet the challenge.

The growth in profitability came was the result of much-improved operating performance and lower financial cost, he said.

"We are confident that this performance will be sustained in the times to come," he added.

PEL has a yarn capacity of about 18,000 tonnes per annum. The company’s products find application mainly in the non-apparel segment such as carpets, bath mats, upholstery fabrics and curtains. It also has a capacity of about 14 million meters for laces and about 1,700 million stitches of embroidery.

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