Clariant Chemicals corrects on profit selling

Clariant Chemicals (India) slumped 5.99% to Rs 490.40 amid profit selling after a recent steep rise.

Shares of Clariant Chemicals (India) jumped 9.97% in three consecutive sessions to settle at Rs 521.65 on 19 May 2021 from its recent close of Rs 474.35 on 14 May 2021.

The company declared its Q4 March 2021 results after market hours on Wednesday (19 May 2021). The chemical maker reported net profit (from continuing operations) at Rs 10.97 crore in Q4 March 2021, steeply higher than net profit of Rs 00.45 crore in Q4 March 2020.

Net sales increased 29.1% to Rs 218.84 crore in Q4 March 2021 over Q4 March 2020. The profit before exceptional item & tax (PBT) increased to Rs 22.74 crore in Q4 March 2021, compared with PBT of Rs 10.67 crore in the similar previous year period.

Clariant Chemicals (India) reported profit before exceptional item & tax of Rs 58.07 crore for the year ended 31 March 2021 (FY21), compared with Rs 34.29 crore in the similar previous year period (FY20), witnessing a significant growth of 69%, for the continuing business.

Sales, in FY21 declined 3.5% at Rs 730.77 crore as against Rs 757.28 crore in FY20, impacted by the Covid nationwide lockdown in the initial months.

Adnan Ahmad, the vice chairman and managing director (MD) of Clariant Chemicals (India), said: "Clariant in India continued to demonstrate its resilience, despite the pandemic. The gloom over COVID-19 was lifting as consumption across different sectors were bouncing back until the second wave was upon us. At Clariant in India, we saw encouraging growth in the past three quarters, reflecting an impressive margin delivery."

Meanwhile, the board recommended a final dividend of Rs 15 per share for the year ended 31 March 2021.

Clariant Chemicals (India) makes specialty chemicals. It operates in the business areas of care chemicals (BU industrial & consumer specialties and new business development), plastics & coatings (BU pigments), natural resources (BU functional minerals, BL mining services and BU additives) and catalysis (BU catalysts and biofuels & derivatives).

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