The firm reported Ebitda margins at 27.26% in the December quarter against 31.31% for the previous period. Ebitda was down 26.87% from a quarter ago to Rs 28.53 crore. Net profit margin fell to 21.79% from 25.64% a quarter ago.
Analysts say that the fall in operating margins was due to a rise in input costs. Costs of materials consumed rose 6% quarter on quarter while year on year they surged over 66%.
Net profit for the quarter stood at Rs 22.81 crore, down 29.62% sequentially while revenue declined 15.33% to Rs 104.67 crore.
Recently, brokerage firm ICICI Securities initiated coverage on the stock with buy rating and gave a target price at Rs 2920 a share. It claimed that the firm is a strong play on smart and green chemistry.
The company listed in July 2021 after raising around Rs 225 crore via fresh issue and Rs 225 crore through offer for sale. Since listing, the firm has surged over 165% from its issue price of Rs 1083 apiece.
The company has said its expansion of Dahej manufacturing facility and upgrade of an R&D facility in Vadodara is underway.
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