Atul Ltd's revenue rose 1.4 percent to Rs 1,212.15 crore, which was better than expected
Sluggish global demand, weak product mix and negative operating leverage heavily weighed on Atul Ltd's earnings during the April-June quarter.
Atul Ltd informed CNBC-TV18 that Year on year basis, the profits have gone up by 54 percent. In the fourth quarter tha company has sold Rs 51 crore more and the gross margins were a tad better. The net profit saw a decline mainly due to some other expenses.
In the coming fortnight, the street is expecting the Reserve Bank of India (RBI) to cut interest rates in the monetary policy review to be announced later this month.
At present, the bulk chemicals industry is running into rough weather. There are two main challenges the industry has to deal with – cheap import from China and issues related to economies of scale. Interestingly, if economies of scale are achieved, then the problem of cheap import could be addressed to a large extent.
In an interview with CNBC-TV18, Aashish Tater, head of research at Fort Share Broking gives his views on select multibaggers like Atul Ltd and Fiem Industries.
The Lalbhai Group has been steadily increasing its shareholding in Atul Ltd. In an interview with CNBC-TV18, Sunil S Lalbhai, MD and CEO of Atul Ltd said, the promoters have been increasing the stake quite substantially over the last many years. He sees FY12 sales at around Rs 1,750-2,000 crore.