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Rossari Biotech tanks 20%, hits 52-week low post December quarter results

The management said raw material volatility has impacted profitability performance during the quarter

Buzzing stocks | Rossari Biotech | Markets

SI Reporter  |  Mumbai 

Rossari Biotech
Rossari Biotech

Shares of tanked 20 per cent to hit a 52-week low of Rs 915 on the National Stock Exchange (NSE) in Tuesday's intra-day trade after the company reported weak operational performance in December quarter (Q3FY22). The stock of the speciality chemicals has fallen below its previous low of Rs 906.65 touched on February 15, 2021.

In Q3FY22, the company's standalone earnings before interest tax and depreciation and amortization (Ebitda) margin contracted 450 bps at 11.8 per cent from 16.3 per cent in Q3FY21. Profit after tax (PAT) declined 11.5 per cent year-on-year (YoY) at Rs 18.27 crore, despite 30 per cent YoY jump in revenues from operations at Rs 269 crore during the quarter.

On consolidated basis, Ebitda margin contracted 530 bps at 10.9 per cent, while PAT remained flat at Rs 22.5 crore as against Rs 21.6 crore in Q3FY21. However, revenues from operations more-than-doubled at Rs 428 crore from Rs 210 crore in the year-ago quarter.

The management said raw material situation remained challenging in Q3 as well. In order to offset these persistent raw material pressures, the company has been undertaking price hikes wherever possible. However, raw material volatility has impacted profitability performance during the quarter, the management said.

"Rossari completed the acquisition of 65 per cent equity shares of Unitop Chemicals w.e.f August 26, 2021 and of 76 per cent equity shares of Tristar Intermediates w.e.f August 30, 2021. Accordingly, the Q3 & 9MFY22 results include consolidation of Unitop and Tristar performance from the date of acquisition till December 31, 2021 and hence are not comparable with the previous periods," the company said.

Rossari is mainly engaged in the business of manufacturing of specialty chemicals for textile, home and personal care, performance chemicals and animal health and nutrition industries.

At 11:27 am, the stock was 11 per cent lower at Rs 1,006 on the NSE. In comparison, the Nifty 50 index was up 0.70 per cent. It has corrected 44 per cent from its record high level of Rs 1,621 touched on October 12, 2021. It had hit a record low of Rs 663.55 on July 23, 2020.

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First Published: Tue, February 15 2022. 11:53 IST