Vinati Organics declines 5 per cent on poor operational performance

Vinati Organics declared its results for the quarter ended September 30, 2020, on Thursday after the market hours.

The company’s consolidated revenue for the quarter Q2FY21 came in at Rs 219.44 crore as against Rs 245.06 crore in the corresponding quarter last year, registering a 10.5 per cent YoY decline and 5.2 per cent QoQ decline.

EBITDA for the quarter fell by 15.8 per cent YoY to Rs 84.12 crore as against Rs 99.85 crore in the corresponding quarter last year, with a corresponding margin contraction of 241 bps. EBITDA margin for the quarter stood at 38.3 per cent vs 40.7 per cent in Q2FY20. This margin contraction was led by a jump in the cost of materials consumed to 41 per cent as against 38 per cent in Q2FY20.

PAT for the quarter came in at Rs 62.04 crore as against Rs 110.01 crore in the corresponding quarter last year, with a YoY decline of 43.6 per cent. This was majorly affected by the sharp decline in other income to Rs 1.40 crore in Q2FY21 as against Rs 16.22 crore in Q2FY20.

Today, the stock of Vinati Organics declined nearly five per cent to Rs 1,110 from its previous close of Rs 1,174.10 on BSE.