Diamines & Chemicals Limited (DACL) has reported a net loss of ₹370.04 lakhs for the second quarter, according to the company's latest financial results. This marks a significant improvement from the ₹623.47 lakh loss reported in the same quarter of the previous year.

Revenue Decline

The specialty chemicals manufacturer saw its revenue from operations decrease to ₹930.23 lakhs in Q2, compared to ₹2,153.18 lakhs in the same quarter of the previous year. This represents a substantial year-over-year decline of about 56.8%.

Half-Year Performance

For the first half of the fiscal year, DACL reported:

The company has managed to narrow its losses despite the significant drop in revenue.

Segment Performance

DACL operates in two segments:

1. Specialty Chemicals
2. Trading in Fruits and Vegetables

However, the company did not report any revenue from the Trading in Fruits and Vegetables segment for the current quarter.

Financial Metrics

• Basic Earnings Per Share (EPS) for Q2 stood at negative ₹3.78.
• The company's total expenses for Q2 were ₹1,402.69 lakhs, compared to ₹1,614.27 lakhs in the same quarter of the previous year.

Corporate Governance

The Board of Directors met on November 5 to approve the unaudited financial results. In compliance with SEBI regulations, the trading window for directors and designated employees was closed from October 1 and will reopen on November 8.

Outlook

While DACL has shown improvement in reducing its net loss compared to the previous year, the significant decline in revenue presents challenges. The company's performance in the coming quarters will be crucial in determining its ability to return to profitability and growth.

Financial Performance

Diamines & Chemicals Limited has reported a significant drop in profits and announced details of its upcoming Annual General Meeting (AGM).

The company's standalone net profit declined 75% to ₹448.73 lakh, compared to ₹1,777.13 lakh in the previous year. Total revenue fell to ₹7,514.57 lakh from ₹10,676.05 lakh year-over-year.

The operating profit margin contracted sharply to 9.32% from 23.33%, which the company attributed to reduced sales prices and increased material costs. Sales volumes remained relatively stable at 1,792.05 MT compared to 1,796.34 MT in the previous year.

Dividend Announcement

Despite the profit decline, the Board of Directors has recommended a final dividend of ₹1 per share, down from ₹2.50 per share in the previous year. The dividend is subject to shareholder approval at the upcoming AGM.

Annual General Meeting Details

The 49th AGM of Diamines & Chemicals is scheduled for September 4, at 11:30 AM at the company's registered office in Vadodara, Gujarat. The company has fixed August 25 as the record date for determining shareholder eligibility for the dividend. The register of members will be closed from August 29 to September 4 for the AGM and dividend payment purposes.

Other Key Developments

• The company allotted 9,06,390 warrants at ₹552 each on a preferential basis, raising ₹12.51 crore as 25% subscription money. These warrants are convertible into equity shares within 18 months.

• Diamines & Chemicals also reported a significant increase in raw material inventory, which impacted its inventory turnover ratio, declining to 1.47 times from 2.83 times in the previous year.

• The company continues to face challenges in the chemical industry, with management citing uncertainty as a factor in their financial planning for the coming years.