Pondy Oxides and Chemicals reports poor bottom-line numbers

Pondy Oxides and Chemicals standalone revenue for the quarter came in at Rs. 260.30 crore, registering 20.5 per cent yoy increase.  

EBITDA for the quarter fell by 32.3 per cent yoy to Rs. 15.46 crore with a corresponding margin contraction of 464 bps. EBITDA margin for the quarter stood at 5.9 per cent. This margin contraction was led by mainly sharp rise in input cost in proportion to sales (92 per cent in Q4FY18 vs 80 per cent in Q4FY17).  

The company’s net profit during the quarter tanked 40.4 per cent yoy to Rs. 7 crore.  

In terms of full year 2017-18, the revenue surge almost 17 per cent yoy to Rs. 956 crore. EBITDA for the period rose 6.4 per cent to Rs. 57 crore with corresponding margin contraction of 60 bps to reach 6 per cent. Net profit for FY18 increased by 3.1 per cent yoy to Rs. 29 crore.  

With response to poor bottom-line growth, the stock of Pondy Oxides dipped almost 4 per cent to touch intraday low of Rs. 378. At 10:55 hours, the stock was trading at Rs. 383.9, down by 2.2 per cent from previous close.