Hyderabad, India – January 30, 2025 – Alkali Metals Limited (NSE: ALKALI, BSE: 533029) has released its unaudited financial results for the quarter and nine months ending December 31, 2024. The company reported a quarterly loss as revenue declined, along with a significant provision for bad debts.
Financial Performance Summary
(Figures in ₹ Lakh)| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 2,233.76 | 2,045.71 | 2,454.64 | 5,746.21 | 5,843.82 | 8,285.59 |
| Total Income | 2,349.04 | 2,055.53 | 2,464.16 | 5,879.27 | 5,881.50 | 8,381.02 |
| Total Expenses | 2,587.16 | 2,256.46 | 2,369.12 | 6,650.79 | 5,765.53 | 8,185.04 |
| EBITDA | -238.13 | -200.93 | 95.04 | -771.52 | 115.97 | 195.98 |
| Exceptional Items | 235.51 | 0.00 | 0.00 | 235.51 | 0.00 | 40.81 |
| Profit Before Tax (PBT) | -473.64 | -200.93 | 95.05 | -1,007.03 | 115.97 | 155.17 |
| Net Profit / (Loss) | -493.49 | -189.50 | 36.38 | -1,015.45 | 57.31 | 112.69 |
| Earnings Per Share (₹) | -4.85 | -1.86 | 0.09 | -9.97 | 0.04 | 1.11 |
Key Highlights & Financial Insights
Revenue & Profitability
- Revenue from operations fell 9.02% YoY to ₹2,233.76 lakh compared to ₹2,454.64 lakh in Q3 FY24.
- The company reported a net loss of ₹493.49 lakh compared to a profit of ₹36.38 lakh in Q3 FY24.
- The negative profitability was impacted by increased expenses and a provision of ₹235.51 lakh for bad debts.
Expense Breakdown
- Cost of Materials Consumed: ₹999.32 lakh, nearly stable YoY.
- Employee Benefit Expenses: ₹314.52 lakh, down from ₹352.40 lakh in Q3 FY24.
- Finance Cost: ₹49.79 lakh, significantly lower than ₹75.29 lakh in Q3 FY24.
- Power & Fuel Costs: ₹214.53 lakh, down from ₹229.96 lakh in Q3 FY24.
- Marketing Expenses: Increased to ₹100.54 lakh from ₹75.48 lakh in Q3 FY24, indicating a push for higher sales.
Segment-Wise Performance
- Domestic Sales: ₹630.46 lakh, down sharply from ₹1,173.82 lakh in Q3 FY24.
- Export Sales: ₹1,603.30 lakh, slightly down from ₹1,280.82 lakh in Q3 FY24, but still contributing over 70% of total revenue.
- Trade Receivables: ₹1,068.45 lakh, down from ₹1,932.37 lakh year over year, reflecting payment collections and highlighting challenges in recovering outstanding dues.
Management Commentary
YS.R. Venkata Rao, Managing Director, stated:"This quarter's performance reflects a challenging economic environment and operational headwinds. The provision for bad debts was a necessary step in maintaining financial discipline. While revenue declined, our export business remains strong, and we are confident in our strategic initiatives to drive long-term profitability."
Strategic Outlook & Market Positioning
- Cost Optimization: The company focuses on cost reduction measures across various expense heads.
- Debt Recovery Measures: Steps are being taken to improve cash flow and manage receivables effectively.
- Expansion of Export Markets: Given the substantial export contribution (~72%), the company is exploring new international opportunities.
- Operational Efficiency: Continued emphasis on efficiency improvements in manufacturing and logistics.