Sumitomo Chemical reports turnaround Q4 numbers

On a consolidated basis, Sumitomo Chemical India reported a net profit of Rs 22.91 crore in Q4 March 2020 as against net loss of Rs 1.12 crore in Q4 March 2019.

Net sales rose 5.7% year-on-year (YoY) to Rs 445.77 crore in Q4 FY20. Profit before tax (PBT) stood at Rs 31.61 crore in Q4 FY20, up by 75.3% from Rs 18.03 crore in Q4 FY19. Current tax expense slumped 66.8% YoY to Rs 7.66 crore in the fourth quarter.

Consolidated net profit rose 23.6% to Rs 204.70 crore on 8.8% increase in net sales to Rs 2,424.75 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 266.52 crore in FY20, up by 2.6% from Rs 259.64 crore in FY19.

"Recently the Government of India released a draft notification for public comments regarding proposed ban of some agro-chemical products. The list of products proposed to be banned includes some of the Company's products (two technical grade products and some other formulated products). The matter is being discussed at various forums such as various industry associations and farmers associations. Such forums and the Company are expected to take necessary actions to defend these products such as filing suitable explanations and technical justifications with authorities for favorable technical assessment and if necessary, other legal recourse.

Based on the management understanding and expectations, the matter is not likely to have material adverse impact on the Company's operations as restrictions, if any, are not expected to be applicable to exports," the company said in a statement.

Sumitomo Chemical India manufactures chemical products. The company offers agricultural chemical and crop protection products and serves customers worldwide.

The scrip rose 2.40% to end at Rs 274.65 on the BSE on Friday. It had traded in the range of Rs 271.40 and Rs 280 during the day.

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