Vinati Organics tumbles after Q2 earnings

Vinati Organics slipped 5.80% to Rs 1,955 after the company reported a 4.8% rise in profit before tax to Rs 103.59 crore in Q2 September 2019 as against Rs 98.81 crore in Q2 September 2018.

Net profit jumped 69.2% to Rs 110.01 crore on 1.5% decline in net sales to Rs 245.06 crore in Q2 September 2019 over Q2 September 2018. The result was announced yesterday, 12 November 2019.

The firm has decided to exercise the option permitted under section I I5BBA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from the current financial year.

Accordingly the provision for income tax and deferred tax balances have been recorded/remeasured using the new tax rate and the resultant impact is recognised in the current period statement of profit and loss. Prior to this option, the company has reversed its deferred lax liabilities amounting to Rs 22.55 crore due to reduction in corporate tax rate.

Further, the company's board approved sub-division one equity share of face value of Rs 2 each to two equity shares of face value of Re 1 each.

Vinati Organics is engaged in the manufacture of organic and inorganic chemical compounds nitrogenous energetic compounds (NEC).

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