Mumbai, January 28, 2025 – Punjab Chemicals & Crop Protection Limited (NSE: PUNJABCHEM, BSE: 506618) has reported a 48.3% year-on-year (YoY) decline in net profit for Q3 FY25, despite a slight increase in revenue. The company's margins were impacted by higher input costs and inventory adjustments, reflecting challenges in the chemicals sector.
Key Financial Highlights – Q3 FY25 (Standalone)
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹21,358 lakh | ₹21,302 lakh | +0.3% |
| Total Income | ₹21,391 lakh | ₹21,411 lakh | -0.09% |
| Net Profit (PAT) | ₹665 lakh | ₹1,287 lakh | -48.3% |
| Earnings Per Share (EPS) | ₹5.42 | ₹9.58 | -43.4% |
| Employee Expenses | ₹2,313 lakh | ₹2,169 lakh | +6.6% |
| Depreciation & Amortization | ₹638 lakh | ₹547 lakh | +16.6% |
- Revenue: ₹69,691 lakh (-5.1% YoY).
- Net Profit: ₹3,231 lakh (-36.8% YoY).
Key Financial Highlights – Q3 FY25 (Consolidated)
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹21,389 lakh | ₹21,416 lakh | -0.12% |
| Total Income | ₹21,407 lakh | ₹21,546 lakh | -0.65% |
| Net Profit (PAT) | ₹607 lakh | ₹1,120 lakh | -45.8% |
| Earnings Per Share (EPS) | ₹4.95 | ₹9.14 | -45.8% |
Key Business Challenges
- Higher Raw Material Costs: Increased input costs impacted profit margins, despite stable revenue.
- Inventory Adjustments: The company recorded a negative inventory adjustment of ₹1,142 lakh, compared to ₹1,020 lakh in Q3 FY24, affecting operational profits.
- Flat Revenue Growth: Limited expansion in chemical exports and domestic demand constraints.
Management Commentary
Shalil S. Shroff, Managing Director, Punjab Chemicals, stated:"While revenue remained stable, profitability was impacted due to higher raw material costs and operational expenses. We remain focused on cost optimizations and efficiency improvements to enhance future earnings."
Strategic Outlook & Industry Trends
- R&D Investments in Specialty Chemicals to improve profit margins.
- Supply Chain Efficiencies to mitigate input cost pressures.
- Expansion in International Markets to drive volume growth in FY26.