Chemical
Atul delivers better results in second quarter
The operating profits for the quarter ended Sep-20 were up by 18.66% at Rs. 227.96 crores while the net profits were down by 16.65% at Rs. 175.06 crores on the back of higher tax charges.
- By ICN Bureau
| October 27, 2020
Atul Ltd, one of the largest integrated chemical companies of India, recently announced its quarterly results for Q1 FY21 which are better than first quarter performance both in terms of sales as well as profits.
The company's revenue fell 5.45% YoY and stood at Rs. 1008.54 crores during the period ended September 30, 2020 as compared to Rs.1066.65 crores last year.
The operating profits for the quarter ended Sep-20 were up by 18.66% at Rs. 227.96 crores while the net profits were down by 16.65% at Rs. 175.06 crores on the back of higher tax charges.
This had a logical impact on the margins of the company. For the Sep-20 quarter, the operating profit margins or OPM expanded by 440 basis points at 22.75% while the net profit margins or NPM for the quarter was down 250 bps at 17.47% due to the impact of higher tax impost in the latest quarter compared to the corresponding last period.
The current quarter numbers are quite encouraging for the company which had a rough first quarter due to Covid-19 pandemic. Of course, profits were lower but that was more due to a higher tax impost in this quarter.
In terms of business segments for the Sep-20 quarter performance and other chemicals dominated with over 68% revenue share followed by life sciences chemicals at 34% revenue share.
Net cash flows from operating activities in the first half of the current fiscal year was down at Rs. 394 crore compared to Rs. 417 crore in the previous corresponding quarter.
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