Manali Petrochemicals faces adverse affect of Covid-19 in Q1

The company has incurred quarterly loss after almost 16 years.

Aug 14, 2020 10:08 IST India Infoline News Service

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Chennai based Manali Petrochemicals Limited informed the exchanges on Thursday that the pandemic situation has affected the normal business operations of the company. Production, sales and profitability, inter alia, have been put at risk.

Though the lockdown started in March 2020, the impact on the business was not much during the last quarter of FY20 except that the product delivery scheduled during the last week could not be fulfilled resulting in a lower sales than planned.

The adverse affect of the Covid-19 pandemic was very significant during the first quarter of FY21. Though the sale of Propylene Glycol - IP grade was near normal, the off-take of Polyols, which during a normal period contribute more than 60% to the revenue was almost nil. The company has incurred a quarterly loss after almost 16 years.

The performance of the company is purely market driven due to cut-throat competition from imports, oil prices and related parameters, is not uniform through the year. Hence it is not possible to have a benchmark to assess the financial impact of the pandemic accurately.

However the impact could be understood from a comparison of figures. The total revenue in Q1FY21 stood at Rs70.33cr as against Rs183.01cr in Q4FY20 and Rs183.00cr in Q1FY20; quarterly average for FY20 wasRs171.35cr.

PBIDT in Q1FY21 Rs3.41cr compared to Rs15.18cr in Q4FY20 and Rs22.26cr in Q1FY20, quarterly average of FY20 Rs 17.90cr.
PBT for Q1FY21 loss of Rs1.18cr compared to gain of Rs10.54cr in Q4FY20 and Rs17.15cr in Q1FY20, quarterly average of FY20 Rs13.02cr.

Manali Petrochemicals Ltd is currently trading at Rs21.45, down by Rs0 or 0% from its previous closing of Rs21.45 on the BSE.

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