Atul Ltd 2020-21

22 Atul Ltd | Annual Report 2020-21 Dear Members, The Board of Directors (Board) presents the annual report of Atul Ltd together with the audited Financial Statements for the year ended March 31, 2021. 01. Financial results ( ` cr ) 2020-21 2019-20 Sales 3,460 3,824 Revenue from operations 3,512 3,906 Other income 104 77 Total revenue 3,616 3,983 Profit before tax 828 803 Provision for tax 197 163 Profit for the year 631 640 Balance brought forward 2,513 2,026 Transfer from comprehensive income (1) (2) Disposable surplus 3,143 2,664 Less: Dividend paid - 126 Dividend distribution tax (net ) - 25 Balance carried forward 3,143 2,513 Directors’ Report 02. Performance Sales decreased by 10% from ` 3,824 cr to ` 3,460 cr mainly due to lower volumes sold, primarily on account of the outbreak of the COVID-19 pandemic across the world. Sales in India decreased by about 5% from ` 1,985 cr to ` 1,885 cr. Sales outside India decreased by about 14% from ` 1,839 cr to ` 1,575 cr. The PBT increased by 3% from ` 803 cr to ` 828 cr inspite of the adverse impact of the pandemic mainly due to favourable input prices and higher dividend income. Sales of Life Science Chemicals (LSC) segment decreased by 4% from ` 1,174 cr to ` 1,124 cr, mainly because of lower sales volume in the sub-segments Crop Protection and Floras; the EBIT decreased by about 7% from ` 213 cr to ` 199 cr. Sales of Performance and Other Chemicals (POC) segment decreased by about 12% from ` 2,650 cr to ` 2,336 cr, mainly because of lower sales volume in three sub-segments; the EBIT decreased by about 1% from ` 579 cr to ` 574 cr. More details are given in the Management Discussion and Analysis (MDA). 03. Dividend and buy-back of equity shares The Board recommends payment of dividend of ` 20 per share on 2,95,87,051 equity shares of ` 10 each fully paid-up. The dividend will entail an outflow of ` 59.17 cr on the paid-up equity share capital of ` 29.59 cr. During 2020-21, the Board approved ` 50 cr for buy-back of equity shares through the open market stock exchange route to return surplus funds to the shareholders of the Company and to improve earnings per share by a decrease in the equity base, thereby leading to a long-term increase in value for the shareholders. The buy-back of equity shares was completed as per details given below: Buy-back opening date February 10, 2021 Buy-back closure date February 19, 2021 Average price per equity shares bought back ` 6,678.58 Aggregate consideration ` 49.88 cr No. of equity shares bought back 74,682 Date of extinguishment of equity shares February 25, 2021 Total no. of equity shares of ` 10 each, pre-buy-back 2,96,61,733 Total no. of equity shares of ` 10 each, post-buy-back 2,95,87,051