Shares of Plastiblends India slipped 3.85 percent to Rs 191 in morning trade on July 12 after the company posted a 24 percent decline in Q1 profit at Rs 7.6 crore from Rs 9.9 crore a year ago, hit by higher input costs.
The company's revenue fell 4.2 percent to Rs 195.7 crore from Rs 204 crore in Q1 FY22-23, while EBITDA margin was down to 6.8 percent from 8 percent during the period, it said in a regulatory filing on July 11.
“Raw material prices remained volatile and created uncertainty in market,” the company said, adding that the energy cost per KWH has increased substantially in all manufacturing locations. "The company's profitability remained subdued because of these factors."
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“The company remains focused on its strategy of increasing revenue from margin accretive products and is giving huge impetus on R&D, increasing customer base and geographical expansion,” Chairman and Managing Director SN Kabra said.
Plastiblends India is into manufacturing of masterbatches, which find applications in various plastic processing industries such as flexible packaging (FMCG, packaged and fast food), consumer durables (electronic appliances, furniture, toys, luggage etc), healthcare, agriculture, piping, textiles and infrastructure.
Plastiblends has manufacturing facilities at Daman, Roorkee (Uttarkhand) and Palsana (Surat - Gujarat).
Shares of the company are up around 2 percent on a year-to-date basis, while the one-year return is at (-)8.20 percent.
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