NACL Industries skid 2% to Rs 73.45 after the company mutually agreed with UPL to terminate the Contract Manufacturing Agreement (CMA) which was signed for the purpose of manufacturing three intermediate products at its Srikakulam Technical plant.
NACL Industries had earlier signed a Contract Manufacturing Agreement (CMA) with UPL for the purpose of manufacturing three intermediate products at the company's Srikakulam Technical plant. In view of changed business circumstances with respect to commercial feasibility of the project and other external and internal factors, the CMA was commercially unviable to both parties.
Accordingly, it has been mutually agreed between NACL Industries and UPL to terminate the CMA and all the ancillary documents/agreements vide execution of the 'Mutual Termination and Settlement Agreement (Termination Agreement)'. Such termination will materially not have any financial and business impact on NACL Industries, the firm further clarified.
NACL Industries' consolidated net profit jumped 30.3% to Rs 24.38 crore on a 28.7% surge in net sales to Rs 442.85 crore in Q2 FY22 over Q2 FY21.
NACL Industries is involved in the business of crop protection. It manufactures technicals (active ingredient) and formulations.
Shares of UPL rose 0.81% to Rs 743.50 on BSE.
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