Atul Limited on October 20 said its consolidated net profit for the September quarter declined 40.14 percent to Rs 90.32 crore from Rs 150.91 crore in the year-ago period on lower sales.
The chemical maker's revenue from operations dropped 19.73 percent to Rs 1,193.71 crore from the year-ago quarter, the company said in a regulatory filing.
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.
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.
In its earnings preview, HDFC Securities had expected a “lacklustre quarter”. It expected revenue to fall by 6.6 percent YoY.
Inventory rationalisation by global agrochemicals and weak demand for products from the US and Europe led to a correction in the prices of finished products, it added.
At 3.03 pm, the stock was trading at Rs 6,680 on the National Stock Exchange, down 1.36 percent from the previous close.
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