Mumbai, Oct 23 (SocialNews.XYZ) Diversified chemical manufacturer Atul Limited on Friday reported a 12.6 per cent year-on-year (YoY) decline in net profit to Rs 159 crore for the quarter ended September (Q2 FY27).
The company also announced a share buyback of up to Rs 90 crore at a maximum price of Rs 7,500 per share through the open market route.
Despite the drop in profit, revenue from operations rose 20.9 per cent to Rs 1,877 crore from Rs 1,552 crore a year ago, according to its stock exchange filing.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7.7 per cent to Rs 246.5 crore from Rs 267 crore in the year-ago quarter.
Operating profitability remained under pressure, with EBITDA margin contracting by 400 basis points to 13 per cent from 17 per cent a year earlier.
Alongside the earnings announcement, the company's board approved a share buyback of up to Rs 90 crore through the open market route on stock exchanges. The board fixed the maximum buyback price at Rs 7,500 per share.
The buyback size excludes transaction costs and other related expenses. At the maximum buyback price, Atul may repurchase up to 1.2 lakh equity shares, representing around 0.41 per cent of its outstanding equity capital.
The actual number of shares bought back will depend on the market price and the total amount utilised under the approved limit.
The company said the buyback will exclude promoters, promoter group members and persons in control of the company. A buyback committee has also been constituted to oversee and execute the process.
Following the earnings announcement, Atul's shares came under selling pressure. The stock was trading at Rs 5,678 on the BSE at 2:33 p.m., down 5.36 per cent from its previous close.
Atul is a diversified chemical company catering to industries such as agriculture, pharmaceuticals, polymers, textiles and personal care, with a broad portfolio of specialty and industrial chemical products.
Source: IANS
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