Last Updated on January 20, 2024 by BFSLTeam BFSLTeam
On January 19, 2024, Atul Limited (BSE, NSE: ATUL) announced its Q3 2023-24 results, recording a decline in Revenue for the quarter, but this loss was compensated by positive volumes in the domestic market.
Additional Read: Q3 Results Dashboard
Table of Content
Result Takeaways
Here are the key highlights of Q3 results for Atul Limited:
- For Q3, the Company’s Revenue declined by 5% relative to Q2 FY24 and decreased by 10% against the same quarter of the previous fiscal year. This was mainly due to a lower sales realisation.
- Better volumes were achieved in the domestic market and these compensated for weak growth in the export business of the Company.
- Low profitability has been witnessed in Q3 FY24 due to lower price realisation and the weak performance of some of the subsidiaries of the Company.
- As far as segments and markets go, Q3 witnessed a muted demand and low price realisation in the Latin American market and the Life Science Chemicals segment.
- The profitability of the Performance and Other Chemicals segment has been adversely affected due to stabilisation of operations.
A View of the Balance Sheet
In terms of performance on the Company’s Balance Sheet, the details are mentioned below:
- In Q3 FY24, there was an increase in non-current assets, primarily due to the completion of main projects and a rise in the valuation of the Company’s long-term investments.
- The Company witnessed an increase in its working capital in Q3 FY24, mainly because of an increase in its present investment (mutual funds).
- The Company witnessed a rise in non-current liabilities because of a loan taken by one of the subsidiaries for use in projects, as well as due to increased deferred tax liabilities.
Additional Read: Atul Limited Share Price
Other Aspects of Atul’s Diary
Apart from financial metrics released for Q3 FY24, the Company released information pertinent to its business. This is highlighted below:
- The Company has completed digitalisation in one of its plants as an initial step for the introduction of technology and digitisation in the manufacturing process through the use of real-time analytics.
- The Company has started operations in the pilot plants of Bulk Chemicals, Polymers-Performance Materials, and Intermediates Businesses.
- The Company has commenced production in the Phin 2 plant.
- The Company has earned a patent grant for its Chlorantraniliprole process from the Indian Patent Office.
- The Company continues its environmental conservation initiatives through its Ujjwal Atul and water conservation projects.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Crore except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q2 FY 2023-24 | QoQ % | Q3 FY 2022-23 | QoQ % | 9m FY 24 | 9m FY 23 | YoY % |
| Revenue | 1,138 | 1,194 | (5%) | 1,268 | (10%) | 3,514 | 4,232 | (20%) |
| EBITDA | 169 | 180 | (6%) | 195 | (13%) | 541 | 718 | (29%) |
| EBITDA % | 15% | 15% | 15% | 15% | 17% | (2%) | ||
| Profit Before Tax | 105 | 124 | (15%) | 142 | (26%) | 368 | 566 | (38%) |
| Profit After Tax (PAT) | 72 | 91 | (11%) | 103 | (30%) | 265 | 414 | (38%) |
| EPS | 24 | 31 | (23%) | 36 | (40%) | 90 | 142 | (39%) |
Q3 FY24 Result Summary
Atul Limited is one of the top chemical companies in India and has a global footprint in countries like Brazil, China, Ireland, parts of Europe, North America, and the Middle East, not to mention India. With 900 products and 400 formulations by the end of Q3 FY 24, the chemical company has made pioneering efforts in its business and stands out as the largest manufacturer of para Anisic alcohol, para Cresol, and para Anisic aldehyde in the world. In India, it is the largest manufacturer of Sulphur black and Vat dyes. The company is actively engaged in serving the industries of glass, homecare, fragrances, paints and coatings, paper, pharmaceuticals, textiles, wind energy, sport and leisure, and more. In Q3, the company reported a decline in profits and revenue, but there have been some segment-wise gains. Nonetheless, in a sector that witnessed a quarter of challenges in general, as chemical prices have tanked globally, the Company is optimistic about the months to come.
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