Manali Petrochemicals Ltd’s standalone net profit for the fourth quarter plunged nearly 100 per cent to ₹1.33 crore as rising input costs combined with a drop in revenues affected its profitability.
The Chennai-based petrochemical manufacturer posted a net profit of ₹71.94 crore during the fourth quarter of FY22. In the third quarter of FY23, the company’s net profit stood at ₹63 lakh.
Revenue from operations, on a year-on-year basis, dropped by 26 per cent to ₹266 crore in the latest quarter as against ₹361 crore for the corresponding quarter of FY22.
The company’s total expenses marginally went up to ₹269 crore (₹267 crore) during the comparable quarters.
“The company’s performance has got affected by the global macroeconomic situation as higher raw material costs and the inability to pass on the increase to the customers has impacted the bottomline,” Ashwin Muthiah, Chairman, Manali Petrochemicals and Founder Chairman of AM International, Singapore said in an earnings release.
“We are looking at improving our operational efficiencies and focusing on margin improvements,” he added.
At a consolidated level, the company’s net profit for Q4 FY23 stood at ₹45 lakh against a net profit of ₹74 crore in the year-ago quarter. Consolidated revenues came down to ₹334 crore (₹414 crore) during this period.
Company subsidiaries
The company has a wholly-owned subsidiary AMCHEM Speciality Chemicals Pvt Ltd, and four step-down subsidiaries including AMCHEM Speciality Chemicals UK Ltd, Notedome Ltd, UK; Penn Globe Ltd, UK; Penn-White Limited, UK; and Pennwhite Print Solutions Ltd, UK.
For the full year, the company posted a standalone net profit of ₹51 crore in the previous fiscal against a net profit of ₹377 crore in FY22. Revenue from operations for the full year stood at ₹1,033 crore (₹1,444 crore).
The company has declared a dividend of ₹0.75 per share for the financial year 2022-23, subject to the approval of the members. Shares of Manali Petrochemicals closed at ₹71.60 apiece on Thursday, down by 1 per cent from the previous day’s closing price.