Manali Petrochemicals Ltd.’s (MPL) standalone net profit for the third quarter ended December plunged to ₹64 lakh from ₹109 crore due to increase in input costs and steep reduction in selling prices.
Revenue from operations contracted to ₹205 crore from ₹399 crore. Cost of materials consumed declined by 25% to ₹156 crore, the company said in a regulatory filing.
Chairman Ashwin Muthiah attributed the decline to increased competition and the inability to raise prices for customers. “However, the company intends to improve its performance, particularly its margins through its acquisition of U.K. firm Penn-White,” he said.
“The company’s performance continued to be affected by a downtrend in the economy impelled by global events since the start of this year,” said MD Ravi.
“As a result, though sales volume could be maintained compared with last quarter, margins had been falling with the continued increase in input costs and steep reduction in selling prices. Nevertheless, revenue generated from speciality products is quite encouraging, thanks to the new business units acquired in the U.K., as part of our strategy to improve our performance,” he added.
