Mukand

Sales dipped by 20.5 per cent to Rs 868.48 crore. This is mainly due to lower off-take by the user industry. Due to the pile-up of inventories in the second half, it stopped output at some of its units. OPM was also under pressure declining from 10.8 per cent to 9.9 per cent. The main reason for the drop in margins is massive increase in power tariff and input costs. Interest burden rose 24.99 per cent to Rs 67.83 crore.

However, a drastic decline in tax liability by 82.43 per cent to Rs 1.8 crore cushioned the bottomline to some extent. It has actually written back the tax provision from the first half to the tune of Rs 7.84 crore, which means the company had a net loss in the second half.

 

The bad performance of the company is reflected in the scrip movement, which has declined in the last one year from Rs 150 to the current level of Rs 55.