Andhra Petrochemicals Reports Q1 Loss, Appoints New Director
Andhra Petrochemicals Limited reported a net loss of Rs 841.64 lakh for Q1 FY24, compared to a profit of Rs 1,590.69 lakh in Q1 FY23. Revenue from operations slightly declined to Rs 14,145.71 lakh. The loss is attributed to lower product prices, steady raw material costs, heavy imports, and competition. The company appointed K.S.S. Aditya as a new director, replacing Y.S.S. Suresh, and reconstituted various board committees.
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Andhra Petrochemicals Limited , a leading petrochemical company, has reported a net loss of Rs 841.64 lakh for the quarter ended June 30, marking a significant downturn from the profit of Rs 1,590.69 lakh recorded in the same quarter last year. The company's financial performance has been impacted by challenging market conditions and increased competition.
Financial Performance
The company's revenue from operations saw a slight decline, dropping to Rs 14,145.71 lakh from Rs 14,345.17 lakh in the previous quarter. This represents a decrease of about 1.4% quarter-on-quarter. The total income for the quarter, including other income, stood at Rs 14,842.62 lakh.
Andhra Petrochemicals attributed the loss to several factors:
- Lower product realization prices
- No corresponding decrease in raw material costs
- Heavy imports
- Competition from substitute products, particularly Iso Nonanol
The company's earnings per share (EPS) for the quarter stood at negative Rs 0.99, compared to positive Rs 1.87 in the corresponding quarter of the previous year.
Operational Expenses
Despite the challenging environment, the company's operational expenses showed some variations:
| Expense Category | Amount (in lakh) |
|---|---|
| Cost of materials consumed | 12,810.27 |
| Employee benefits expense | 638.85 |
| Finance costs | 218.17 |
| Power and Fuel | 1,387.13 |
Board Changes and Committee Reconstitution
In a significant board-level change, Andhra Petrochemicals announced the appointment of Sri K.S.S. Aditya as a new director. Aditya, nominated by Andhra Pradesh Industrial Development Corporation Ltd. (APIDC), replaces Sri Y.S.S. Suresh on the board.
K.S.S. Aditya, aged 46, brings valuable experience to the board. He is a Commerce Graduate currently serving as Manager (EPM, Accounts & HRD) at APIDC. His expertise spans finance, accounts, management information systems, human resources, and equity portfolio management.
Following this appointment, the board has reconstituted various committees, including:
- Audit Committee
- Nomination and Remuneration Committee
- Stakeholders' Relationship Committee
- Corporate Social Responsibility (CSR) Committee
- Risk Management Committee
These changes will be effective from the conclusion of the upcoming 41st Annual General Meeting.
Looking Ahead
While the company faces immediate challenges, it continues to adapt to market conditions. The management's focus on restructuring and strategic appointments suggests a proactive approach to navigating the current economic landscape.
Investors and stakeholders will be watching closely to see how these changes and strategies impact the company's performance in the coming quarters, especially in light of the ongoing volatility in the petrochemical sector.
Historical Stock Returns for Andhra Petrochemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +10.70% | +25.56% | +26.47% | +25.31% | -37.60% | +92.12% |
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