Shares of Insecticides India tanked 6 percent in early trade on May 31 following the company's dismal performance in the fourth quarter.
The agrochemical firm reported a consolidated loss of Rs 29.3 crore for the March quarter of FY23, which was weighed down by elevated input costs. This is in stark contrast to the profit of Rs 22.3 crore recorded during the same period in the previous year.
The operational performance also remained weak due to high raw material costs, which saw the company report an EBITDA ( Earnings before interest, taxes, depreciation, and amortisation) loss of Rs 28.3 crore in Q4 as against an EBITDA profit of Rs 33.9 crore in the year ago period.
At 10.53 am, shares of Insecticides India were trading at Rs 451.10 on the National Stock Exchange, down 3.1 percent from the previous close. Volumes in the counter were also high as 28,000 shares changed hands on the exchanges, as against the one-month daily traded average of 19,000 shares.
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Industry pressure
Despite the challenging circumstances, the company's revenue from operations for the fourth quarter grew 8.6 percent on year to Rs 302 crore as compared to the corresponding period of the previous year.
The agrochem industry has struggled in the recent quarters, largely on the back of higher channel inventory and excess supply from China at lower prices.
Insecticides India has also struggled with the challenging environment as its net profit has declined sequentially along with a pressure on operating margin for the past two quarters.
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