Following inventory rationalization in the agrochemicals sector in FY24, the demand situation is showing some signs of improvement, it added.
Agrochemicals segment customer enquiries remain robust and the work on AIs is progressing as per plan, the company said.
The company on Wednesday announced its consolidated financial results for the fourth quarter and year ended March 31, 2024.
Its audited results were approved by the Board of Directors in a meeting held yesterday.
The consolidated revenue of the company declined 6 per cent from Rs 3,778 crore to Rs 3,570 crore in Q4FY24 when compared with Corresponding Period Last Year (CPLY).The company’s Earnings before Interest and Tax (EBIT) decreased 27 per cent from Rs 840 crore to Rs 616 crore in Q4FY24 when compared with CPLY.The company’s Profit after Tax (PAT) decreased 25 per cent from Rs 562 crore to Rs 422 crore in Q4FY24 when compared with CPLY.
Commenting on the results, Chairman and Managing Director, Ashish Bharat Ram said, “While the general performance has been weak, we have seen a reasonable recovery in our Chemicals Business in the fourth quarter, as we had envisaged. We believe that this recovery will pick up pace in the second half of FY25.”
Consolidated Q4FY24 Segment Results The Chemicals Business reported a decline of 14 per cent in its segment revenue from Rs 2,102 crore to Rs 1,816 crore during Q4FY24 over CPLY.
The operating profit of the Chemicals Business decreased 33 per cent from per cent 739 crore to Rs 498 crore in Q4FY24 over CPLY. During the quarter, the
Specialty Chemicals Business continued to face headwinds due to inventory rationalization by certain key customers, while performing better than Q3FY24. In addition, a lot of capacity has come up in China, leading to pricing pressure on intermediate products.