Shares of Gujarat Alkalies and Chemicals slumped over 5 percent in early trade on May 23, a day after the company reported dismal earnings numbers for the quarter that ended in March.
The chemical company recorded a sharp decline in its net profit for the quarter, down 67.8 percent on year to Rs 71 crore from Rs 221 crore in the same quarter last year.
The drag in bottomline was largely due to significantly weaker operating performance. EBITDA (Earnings before interest, taxes, depreciation, and amortization) margin eroded sharply to 23.8 percent in Q4 as against 30.7 percent in the year-ago period.
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Sluggish demand and a fall in prices also weighed on the company's revenue for the quarter, bringing it down 0.3 percent on year to Rs 1,138 crore in the fourth quarter.
At 09.38 am, shares of Gujarat Alkalies and Chemicals were trading at Rs 666 on the National Stock Exchange, down 2.30 percent from the previous close. The stock also plunged to a low of Rs 645, just a few minutes into trade today.
Sequentially, this is the third straight quarter that the company has seen a fall in its net profit. Weakening financials have also weighed on the stock performance as the scrip has lost over 26 percent in the past year.
Meanwhile, the company's board also approved of a dividend payout of Rs 23.55 per share.
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