Atul net profit tanks 32.5% in Q3, revenue slumps 11%

Chemicals company Atul posted a net profit of Rs 70.94 crore for the quarter ended December 2023, marking a decrease of 32.5 percent from Rs 105.10 crore a year back. On a sequential basis, though, the bottomline was up 6.2 percent from Rs 91.23 crore.

The revenue from operations came in at Rs 1,137.80 crore for the quarter under review, down 10.8 percent on-year from Rs 1,268.25 crore from Q3FY23. The company’s revenue also fell 4.7 percent on a quarter-on-quarter from Rs 1,193.71 crore.

The poor performance of the chemical producer highlights the challenges faced by the sector. Chemical prices have tumbled in the international market, hurting margins and profitability.

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On Novemeber 7, Atul’s board of directors approved a proposal to buy-back equity shares. The buy-back of equity shares through the open market stock exchange route commenced on November 21, 2023, and it was completed on January 01, 2024.

Atul bought back and extinguished 72,000 equity shares at an average buy-back price of Rs 6,934.70 per equity share, constituting 0.24% of the pre-buy-back paid-up equity share capital of the Company. The buy-back resulted in a cash outflow of Rs 49.93 crore.

Atul serves about 4,000 customers belonging to 30 industries across the world. The company has subsidiary companies in the US, the UK, China, Brazil and the UAE.

Atul claims to manage about 1,350 products and formulations.

Over the past year, shares of Atul have been volatile in trade, ultimately falling around 15 percent. In comparison, the frontline Nifty 50 index has recorded a gain of around 20 percent during the same time period.