Q3FY18 Results: AksharChem posts 10 per cent YoY declines in PAT

AksharChem reported its results for the quarter ended December 31, 2017 on Wednesday. The company's standalone revenue for the quarter came in at Rs. 58.84 crore, registering 7.9 per cent yoy decline.

EBITDA for the quarter fell by 62.9 per cent yoy to Rs. 8.9 crore with a corresponding margin contraction of 2238 bps. EBITDA margin for the quarter stood at 15.1 per cent. This margin contraction was led by sharp jump in employee benefit expenses and cost of materials by 58.6 per cent yoy and 37.8 per cent yoy, respectively. Also, a sharp jump in purchase of stock-in-trade by 130 per cent yoy contributed to the margin contraction.

The PAT for the quarter came in at Rs. 8.3 crore, yoy decline of 10.3 per cent. This was partly due to 11.8 per cent yoy jump in depreciation expenses.

AksharChem is engaged in the business of manufacturing and export of dyes and pigments. Its products include Vinyl Sulphone and copper phthalocyanine (CPC) Green. Its Vinyl Sulphone is the raw material for reactive dyes used in textile business. Its CPC Green is a raw material for the industries, such as printing inks, paints, rubber, plastics and leather.

On Wednesday, the stock opened at Rs. 768 per share and touched an intraday low of Rs. 693.95, on the BSE.