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For the quarter ended June'20, Apcotex Industries registered 59% fall in sales to Rs 59.86 crore. OPM was negative at 7.2% compared to 12.3% which saw OP reported loss of Rs 4.31 crore compared to profit of Rs 18.1 crore in Q1FY20.Other income was Rs 1.87 crore compared to Rs 1.15 crore and interest cost rose118% to Rs 87 lakh. As depreciation grew 22% to Rs 3.7 crore, PBT reported loss of Rs 7.01 crore compared to profit of Rs 15.8 crore.Tax expense was a credit of Rs 34 lakh compared to tax expense of Rs 4.44 crore, after which PAT reported loss of Rs 6.67 crore compared to profit of Rs 11.36 crore.
In compliance with the directions issued by the Central and State Governments to contain the spread of COVID 19 pandemic, the company suspended manufacturing operations in its plant from March 24, 2020. The operations were resumed in a phased manner with effect from April 20, 2020 under strict observance of guidelines issued by district administration to mitigate the risk of COVID 19.
Sales were lower by 59% due to the lockdown in India but volume sales were lower by only 45%. Lower volume sales coupled with high cost inventory resulted in loss before tax of 7 crore during Q1FY21.
As oil prices fell drastically between March and June, as a result of which petrochemical prices fell drastically as a result of which finished goods prices were also lower. The company reduced prices by as much as 30 to 35% in some of its products to do volume.
FY'20 results
In FY'20, it registered 21% fall in sales to Rs 495.98 crore. OPM fell 410 basis points to 6.7% which saw OP fell 51% to Rs 33.38 crore.
Other income fell23% to Rs 5.93 crore and interest cost went down27% to Rs 1.31crore. After providing for depreciation (up14% to Rs 13.4 crore), PBT fell 60% to Rs 24.6 crore. Provision for tax fell 31% to Rs 8.5 crore after which PAT went down67% to Rs 16.1 crore. Further considering PPA, Net profit fell 64% to Rs 16.63 crore.
The stock trades at Rs 110.
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