Crop protection and chemical company Sharda Cropchem Limited reported a 95.8 percent decline in net profit at Rs 4.64 crore in the October-December quarter, as against Rs 108.4 crore last year.
The company's revenue from operations slumped 38 percent to Rs 632.4 crore from Rs 1,017.3 crore in the corresponding period of the preceding fiscal, the company said in an exchange filing on January 24.
Follow our market blog for all the live action
After the results, shares of the company were trading at Rs 406, down by Rs 19.6 or 5 percent, on the NSE. In the last year, the counter has declined over 13 percent as compared to Nifty's 20 percent gain over the same period.
At the operating level, EBITDA slid 76 percent to Rs 47 crore in the third quarter of this fiscal over Rs 197 crore in the same period last year, Sharda Cropchem said.
The EBITDA margin stood at 7.5 percent in the reporting quarter, down 1180 basis points compared to 19.3 percent a year ago. EBITDA is earnings before interest, tax, depreciation, and amortisation.
"Weaker demand scenario in Europe and Latin America coupled with lower product price realizations across all regions has caused the dip in revenue, the company said in their investor presentation.
Furthermore, raw material and finished goods sales prices have reduced
substantially. "This has led to a stock revaluation as per accounting
policy and has impacted the GP and profitability to the tune of Rs 91
crores and the company experienced a significant decrease in product price realization", it further added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
