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FACT shares plunge 8% as net profit dives in Q3

FACT Q3 earnings: Declining revenue and weak operational performance put significant pressure on the company's profits.

February 14, 2025 / 14:31 IST
A sharp influx of trading volumes further intensified the selloff in FACT shares.
     
     
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    Shares of Fertilisers and Chemicals Travancore slid over 8 percent on February 14, as investors dumped the stock after the company's net profit tanked in Q3.

    The fertiliser company's net profit dived nearly one-fourth on year to just Rs 8 crore during the December quarter, marking a sharp downturn from the Rs 30.30 crore that it reported in the year ago period.

    A weak operational performance, combined with the fall in topline weighed heavily on the company's profit. Revenue slipped 13.5 percent on year to Rs 949.4 crore, down from Rs 1,097.3 crore in the same period last fiscal. EBITDA margin also eroded to 3.3 percent in Q3, as against 3.9 percent in the same quarter of the previous fiscal.

    At 2.20 pm, shares of FACT were trading at Rs 745.65 on the NSE. A sharp influx of trading volumes further intensified the selloff in the stock. As many as six lakh shares of the company changed hands on the exchanges thus far, already three times the one-week daily traded average of two lakh shares.

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    On a segmental basis, a degrowth in the company's fertiliser vertical, coupled with a net loss in the petrochemical segment, dragged the overall growth for FACT in Q3.

    Meanwhile, the company also bore the brunt of a deferred tax expense of Rs 6.7 crore in Q3, adding to the pressure on net profit.

    Aside from some occasional bursts of upmove in the run-up to the union budget, shares of FACT have remained largely under pressure in 2025, losing upto one fourth of its value in the year so far.

    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.

     

    Moneycontrol News
    first published: Feb 14, 2025 02:31 pm

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