Companies

Stove Kraft posts ₹33.5 cr Q3 net profit

Our Bureau Bengaluru | Updated on February 24, 2021

‘Plan to become zero-debt company in near future’

Stove Kraft Limited, maker of branded kitchen appliances, has posted ₹33.5 crore profit for the third quarter (Q3) of FY 2020-21 against ₹8.9 crore posted last year.

The company’s Q3 revenues were higher by 47 per cent at ₹294.7 crore compared to ₹200.4 crore in the same period last year.

Commenting on the company’s performance, Rajendra Gandhi, Managing Director, said, “Despite challenging times this year, the company has managed to deliver stellar results on the back of volume growth led by a good festival season, operational efficiencies, better product mix and cost rationalisation programmes.

Also read: Stove Kraft IPO subscribed 18 times

“The company has taken several initiatives including continuous indigenisation, which has led to improvement in gross margins.”

On the working capital cycle, Gandhi said, “It has also improved from 54 days in March 2020 to 47 days as of December 2020. During the current financial year, the company has reduced its debt by ₹134 crore to around ₹93 crore through the IPO and about ₹41 crore from internal accruals. The company plans to have zero debt in the near term.”

Published on February 24, 2021

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