Q1FY19 Result: Aksharchem PAT increases to Rs. 7.55 crore

Aksharchem reported its results for the quarter ended June 30, 2018 on Wednesday. The company’s consolidated revenue for the quarter came in at Rs. 75.46 crore as against Rs. 63.74 crore in the corresponding quarter last year, registering 18.4 per cent yoy increase.

EBITDA for the quarter fell by 28.8 per cent yoy to Rs. 8.5 crore as against Rs. 11.97 in the corresponding quarter last year with a corresponding margin contraction of 749 bps. EBITDA margin for the quarter stood at 11.3 per cent as against 18.8 per cent in the corresponding quarter last year. This deterioration in operating performance was led by jump in cost of materials, employee expenses and other expenses by 50.6 per cent, 46 per cent and 35.7 per cent yoy, respectively.

The PAT for the quarter came in at Rs. 7.55 crore, yoy increase of 5.2 per cent. This was due to a jump in other income of Rs. 3 crore from Rs. 0.64 crore in the corresponding quarter last year. Also, decline in interest expenses to 0.24 crore from Rs. 0.70 crore in the corresponding quarter last year aided the bottomline.

Aksharchem is engaged in the business of manufacturing and export of dyes and pigments. It is the largest exporter of Vinyl Sulphone in India with over 45 per cent share in exports of this products.

On Wednesday, the stock opened at Rs. 522 per share and made an intraday high and low of Rs. 565.50 and Rs. 521, respectively, on the BSE.