
Gujarat Alkalies and Chemicals witnessed a significant setback on November 9, with shares plunging nearly 5 percent in early trade. The company’s disappointing performance in Q2 was primarily attributed to the challenging demand environment affecting the chemical sector.
The financial report revealed a stark contrast from the previous year, as the company reported a net loss of Rs 18.40 crore in the July-September period, compared to a net profit of Rs 60.50 crore in the same period last year.
The weak operational performance and a decline in revenue were major contributors to the company’s struggles. Fierce competition from Chinese counterparts and unpredictable market conditions during the quarter further exacerbated the challenges.
Revenue plummeted by 13.8 percent to Rs 971.30 crore, a significant drop from the Rs 1,127.30 crore reported in the corresponding quarter of the previous fiscal year. The operational difficulties were underscored by a sharp erosion in EBITDA margin, plummeting to 4.7 percent in the September quarter from 20.10 percent in the same period of the preceding fiscal year.
At 11:33 am, the company’s shares were trading 0.50 percent lower at ₹738.95, reflecting the concerns of investors amidst the company’s challenging financial performance.