Astec,
Portions of Astec Lifesciences (Astec) took off by a huge 14 percent to Rs 1,474.20 in Friday’s intra-day exchange on the BSE. In the past two trading days, the Pesticides and Agrochemicals company’s stock has increased by 37%. The S&P BSE Sensex, on the other hand, rose 2% over the same time period.
at 01:07 pm; Compared to a rise of 1.5% in the benchmark index, the stock had gained 10%. Normal exchanging volume over the counter hopped more than three-crease today. On the NSE and BSE as a whole, approximately 560,000 shares were traded.
With a convention over the most recent two days, the stock has gotten back in the game of 40% from its 52-week low of Rs 1,050, most as of late addressed Tuesday, Walk 28. It has decreased by more than half since its 52-week peak of Rs. 2,285.65, which occurred on November 17, 2022.
Active Ingredients (Technical), Bulk, Formulations, and Intermediate products are produced by Astec Agrochemical. Astec has a healthy mix of domestic and international sales.
The company reported a 34.7 percent year-over-year (YoY) decrease in profit after tax of Rs 30.6 crore for the first nine months of the fiscal year 2022-23 (9MFY23), compared to Rs 46.8 crore for the previous fiscal year. the same time last year. On the other hand, revenue increased by 25.3% to Rs 511.70 crore.
EBITDA, or earnings before interest, taxes, depreciation, and amortization, decreased by 11.9% to Rs 81.30 crore. In comparison to 22.6 percent in 9MFY22, the EBITDA margin decreased by 670 bps to 15.9% in 9MFY23.
According to Astec, sales and demand for the company’s flagship products have decreased in most markets. However, CMO sales increased by 2.8 times over the previous year, partially compensating for volume decreases in the enterprise business.
In spite of sluggish demand in domestic markets and improved export realizations, domestic sales increased by 11% in 9MFY23.
Astec’s long-term rating outlook has been changed from positive to stable by ICRA. The rating action reflects ICRA’s expectation that difficulties in its key triazole fungicide product segments will likely limit the company’s near-term operating performance.
In the recent past, volume off-take as well as realizations are muted due to higher-than-average channel inventory in these product segments in domestic and international markets for a variety of reasons (such as low liquidations, adverse weather conditions, and destocking strategies). in the recent months, and it is anticipated that it will continue so in the near future until normalcy returns.
The company’s credit metrics are unlikely to significantly improve in the near future if debt-financed capex continues. Nonetheless, ICRA noted that the company is expanding its presence in the high-margin contract development and manufacturing (CDMO) sector and establishing a research and development (R&D) center in the coming months to address product concentration issues. Security can be provided and risks can be reduced. In the rating rationale, the rating agency stated that enterprise market volatility itself was commoditized.
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