Gujarat Alkalies Stock Trades Lower After Dismal Q2 2023 Performance

The company posted a net loss of Rs 18.40 crore in the July-September period as against a net profit of Rs 60.50 crore in the year-ago period largely bogged down by the weak demand environment plaguing the chemical sector.

Gujarat Alkalies share price was trading lower by 2 percent intraday on November 9 at Rs 730.05 per share on NSE after the company reported dismal earnings for the September quarter.

The company posted a net loss of Rs 18.40 crore in the July-September period as against a net profit of Rs 60.50 crore in the year-ago period largely bogged down by the weak demand environment plaguing the chemical sector.

The net loss came on the back of a weak operational performance, and a fall in revenue due to aggressive competition from Chinese counterparts and volatile market conditions prevailing during the quarter.

Revenue fell 13.8 percent on year to Rs 971.30 crore as compared to Rs 1,127.30 crore reported in the base quarter.

EBITDA margin eroded sharply to 4.7 percent in the September quarter as against 20.10 percent recorded in the same period of the preceding fiscal.

The chemical industry has been struggling with weak demand and an influx of high inventory from Chinese companies in recent quarters, which has heavily impacted earnings growth for the sector.

Source: NSE

Disclaimer:

The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.