Decline in earnings, led by lower realization and loss in some subsidiaries

23 Jan 2024
5 Min read 
  • Atul (ATLP) reported a decline in earnings in 3QFY24 due to lower realization and loss in some subsidiaries.
  •  Revenue in the Life Science Chemicals segment declined 31% YoY, while it increased by 2% YoY in the Performance & Other Chemicals segment.
  •  Gross margin was 47.1% and EBITDAM declined to 13.3% during the quarter.
  •  The contribution of Performance & Other Chemicals to overall EBIT increased to 61% in 3QFY24.
  •  The stock is trading at 46.5x FY25E EPS and 26.2x FY25E EV/EBITDA.
  •  The company is facing short-term challenges due to a global economic slowdown and overvaluation as a commodity chemical firm.
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