Capitaline

Results 21-Oct-23

Analysis

Atul

OP down 30%

Consolidated net sales (including other operating income) of Atul has declined 19.74% to Rs 1193.71 crore. Sales of Life Science Chemicals segment has gone down 36.95% to Rs 361.98 crore (accounting for 29.03% of total sales). Sales of Performance & Other Chemicals segment has gone down 12.40% to Rs 868.42 crore (accounting for 69.64% of total sales). Sales of Others segment rose 75.21% to Rs 16.54 crore (accounting for 1.33% of total sales). Inter-segment sales came down from Rs 87.62 crore to Rs 53.23 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 44.38% to Rs 118.10 crore. PBIT of Life Science Chemicals segment fell 70.56% to Rs 41.74 crore (accounting for 35.34% of total PBIT). PBIT of Performance & Other Chemicals segment fell 1.10% to Rs 72.22 crore (accounting for 61.15% of total PBIT). PBIT of Others reported profit of Rs 4.14 crore compared to loss of Rs 2.43 crore.

PBIT margin of Life Science Chemicals segment fell from 24.69% to 11.53%. PBIT margin of Performance & Other Chemicals segment rose from 7.37% to 8.32%. PBIT margin of Others segment rose from negative 25.74% to 25.03%. Overall PBIT margin fell from 13.48% to 9.47%.

Operating profit margin has declined from 14.81% to 13%, leading to 29.55% decline in operating profit to Rs 155.19 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.07% to 47.51%. Purchase of finished goods cost rose from 4.92% to 4.94%. Employee cost increased from 6.42% to 8.84%. Other expenses fell from 25.81% to 24.69%. Power and Oil fuel cost fell from 12.08% to 11.93%.

Other income fell 30.54% to Rs 22.13 crore. PBIDT fell 29.67% to Rs 177.32 crore. Provision for interest fell 4.12% to Rs 1.86 crore.

PBDT fell 29.87% to Rs 175.46 crore. Provision for depreciation rose 10.03% to Rs 53.99 crore. Fixed assets increased to Rs 2,938.43 crore as of 30 September 2023 from Rs 2,345.13 crore as of 30 September 2022. Intangible assets declined from Rs 35.02 crore to Rs 29.14 crore.

Profit before tax down 39.61% to Rs 121.47 crore. Share of profit/loss was 67.67% higher at Rs 2.23 crore. Provision for tax was expense of Rs 32.47 crore, compared to Rs 54.39 crore. Effective tax rate was 26.25% compared to 26.86%.

Net profit attributable to owners of the company decreased 40.15% to Rs 90.32 crore.

Equity capital stood at Rs 29.53 crore as of 30 September 2023 to Rs 29.53 crore as of 30 September 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 45.06% as of 30 September 2023 ,compared to 45.05% as of 30 September 2022 . Promoters pledged stake was 0.98% as of 30 September 2023 ,compared to 1.50% as of 30 September 2022.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Atul has declined 19.85% to Rs 2375.73 crore. Sales of Life Science Chemicals segment has gone down 32.74% to Rs 712.20 crore (accounting for 28.68% of total sales). Sales of Performance & Other Chemicals segment has gone down 14.91% to Rs 1,742.88 crore (accounting for 70.18% of total sales). Sales of Others segment rose 36.47% to Rs 28.25 crore (accounting for 1.14% of total sales). Inter-segment sales came down from Rs 163.71 crore to Rs 107.60 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 38.12% to Rs 261.18 crore. PBIT of Life Science Chemicals segment fell 57.53% to Rs 93.98 crore (accounting for 35.98% of total PBIT). PBIT of Performance & Other Chemicals segment fell 20.67% to Rs 161.24 crore (accounting for 61.74% of total PBIT). PBIT of Others reported profit of Rs 5.96 crore compared to loss of Rs 2.46 crore.

PBIT margin of Life Science Chemicals segment fell from 20.90% to 13.20%. PBIT margin of Performance & Other Chemicals segment fell from 9.92% to 9.25%. PBIT margin of Others segment rose from negative 11.88% to 21.10%. Overall PBIT margin fell from 13.49% to 10.52%.

Operating profit margin has declined from 15.29% to 14.20%, leading to 25.55% decline in operating profit to Rs 337.45 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.78% to 46.54%. Purchase of finished goods cost rose from 4.40% to 4.51%. Employee cost increased from 6.16% to 8.83%. Other expenses fell from 25.69% to 24.77%. Power and Oil fuel cost rose from 11.24% to 12.12%.

Other income fell 55.27% to Rs 30.33 crore. PBIDT fell 29.41% to Rs 367.78 crore. Provision for interest rose 10.83% to Rs 3.89 crore. Loan funds rose to Rs 161.60 crore as of 30 September 2023 from Rs 73.19 crore as of 30 September 2022. Inventories declined from Rs 951.92 crore as of 30 September 2022 to Rs 623.48 crore as of 30 September 2023. Sundry debtors were lower at Rs 906.70 crore as of 30 September 2023 compared to Rs 980.24 crore as of 30 September 2022. Cash and bank balance rose to Rs 77.72 crore as of 30 September 2023 from Rs 42.62 crore as of 30 September 2022. Investments rose to Rs 1,066.82 crore as of 30 September 2023 from Rs 962.45 crore as of 30 September 2022 .

PBDT fell 29.69% to Rs 363.89 crore. Provision for depreciation rose 9.92% to Rs 105.92 crore. Fixed assets increased to Rs 2,938.43 crore as of 30 September 2023 from Rs 2,345.13 crore as of 30 September 2022. Intangible assets declined from Rs 35.02 crore to Rs 29.14 crore.

Profit before tax down 38.75% to Rs 257.97 crore. Share of profit/loss was 70.33% higher at Rs 4.19 crore. Provision for tax was expense of Rs 68.88 crore, compared to Rs 112.08 crore. Effective tax rate was 26.27% compared to 26.46%.

Minority interest increased 89.97% to Rs -0.39 crore. Net profit attributable to owners of the company decreased 38.60% to Rs 193.67 crore.

Equity capital stood at Rs 29.53 crore as of 30 September 2023 to Rs 29.53 crore as of 30 September 2022. Per share face Value remained same at Rs 10.00.

Cash flow from operating activities increased to Rs 387.20 crore for YTD ended September 2023 from Rs 274.83 crore for YTD ended September 2022. Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 301.20 crore, compared to Rs 436.86 crore during the YTD ended September 2022.

The scrip is currently trading at Rs 6674

Atul : Consolidated Results
Particulars	2309 (03)	2209 (03)	Var.(%)	2309 (06)	2209 (06)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	1,193.71	1,487.27	-20	2,375.73	2,964.12	-20	5,427.52	5,080.89	7
OPM (%)	13.0	14.8		14.20	15.3		14.28	17.9
OP	155.19	220.28	-30	337.45	453.23	-26	774.85	911.44	-15
Other Inc.	22.13	31.86	-31	30.33	67.8	-55	114.87	76	51
PBIDT	177.32	252.14	-30	367.78	521.03	-29	889.72	987.44	-10
Interest	1.86	1.94	-4	3.89	3.51	11	7.9	9.17	-14
PBDT	175.46	250.2	-30	363.89	517.52	-30	881.82	978.27	-10
Depreciation	53.99	49.07	10	105.92	96.36	10	197.81	176.69	12
PBT	121.47	201.13	-40	257.97	421.16	-39	684.01	801.58	-15
Share of Profit/(Loss) from Associates	2.23	1.33	68	4.19	2.46	70	3.83	8.16	-53
PBT before EO	123.7	202.46	-39	262.16	423.62	-38	687.84	809.74	-15
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	123.7	202.46	-39	262.16	423.62	-38	687.84	809.74	-15
Taxation	32.47	54.39	-40	68.88	112.08	-39	181.21	205	-12
PAT	91.23	148.07	-38	193.28	311.54	-38	506.63	604.74	-16
Minority Interest (MI)	0.91	-2.84	PL	-0.39	-3.89	90	-7.46	0.48	LP
Net profit	90.32	150.91	-40	193.67	315.43	-39	514.09	604.26	-15
EPS (Rs)*	#	#		#	#		174.19	204.74
Notes
* EPS is on current equity of Rs 29.51 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Atul : Consolidated Segment Results
	% of (Total)	2309 (03)	2209 (03)	Var.(%)	% of (Total)	2309 (06)	2209 (06)	Var.(%)	% of (Total)	2303 (12)	2203 (12)	Var.(%)
Sales
Life Science Chemicals	29	361.98	574.15	-37	29	712.2	1,058.87	-33	34	1,959.16	1,465.10	34
Performance & Other Chemicals	70	868.42	991.3	-12	70	1,742.88	2,048.26	-15	65	3,706.17	3,759.18	-1
Others	1	16.54	9.44	75	1	28.25	20.7	36	1	49.64	69.98	-29
Total Reported Sales	100	1,246.94	1,574.89	-21	100	2,483.33	3,127.83	-21	100	5,714.97	5,294.26	8
Less: Inter segment revenues		53.23	87.62	-39		107.6	163.71	-34		287.45	213.37	35
Net Sales		1,193.71	1,487.27	-20		2,375.73	2,964.12	-20		5,427.52	5,080.89	7
PBIT
Life Science Chemicals	35	41.74	141.76	-71	36	93.98	221.3	-58	64	422.65	178.88	136
Performance & Other Chemicals	61	72.22	73.02	-1	62	161.24	203.25	-21	36	240.25	575.89	-58
Others	4	4.14	-2.43	LP	2	5.96	-2.46	LP	0	1.15	24.43	-95
Total PBIT	100	118.1	212.35	-44	100	261.18	422.09	-38	100	664.05	779.2	-15
Less : Interest		1.86	1.94	-4		3.89	3.51	11		7.9	9.17	-14
Add: Other un-allcoable		7.46	-7.95	LP		4.87	5.04	-3		31.69	39.71	-20
PBT		123.7	202.46	-39		262.16	423.62	-38		687.84	809.74	-15

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