Paushak Reports Q2 Revenue Growth Amid Profit Decline
Paushak Limited's Q2 results show revenue growth of 2.62% to ₹588.00 million, but net profit declined 39.44% to ₹86.00 million. EBITDA fell 12.94% to ₹148.00 million, with margin compression of 454 bps. The company announced share subdivision and 3:1 bonus issue. Half-year total income reached ₹1,175.90 crore with net profit of ₹206.50 crore. Balance sheet shows total assets of ₹619.86 crore and other equity of ₹477.19 crore.
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Paushak Limited , a specialty chemicals manufacturer, has released its financial results for the second quarter, revealing a mixed performance with revenue growth accompanied by a decline in profitability.
Revenue Growth
The company reported a revenue increase to ₹588.00 million in Q2, up from ₹573.00 million in the same quarter of the previous year, marking a modest year-over-year growth of 2.62%.
Profit Decline
Despite the revenue growth, Paushak experienced a significant drop in net profit. The company's net profit for Q2 stood at ₹86.00 million, down from ₹142.00 million in the corresponding quarter last year, representing a substantial decrease of 39.44%.
EBITDA Performance
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a decline:
| Metric | Q2 Current | Q2 Previous | Change |
|---|---|---|---|
| EBITDA (₹ in million) | 148.00 | 170.00 | -12.94% |
| EBITDA Margin | 25.18% | 29.72% | -454 bps |
The EBITDA margin compressed by 454 basis points year-over-year, indicating increased pressure on the company's operational efficiency.
Half-Yearly Performance
For the half-year ended September 30, Paushak reported:
- Total income of ₹1,175.90 crore
- Profit before tax of ₹269.70 crore
- Net profit after tax of ₹206.50 crore
Balance Sheet Highlights
As of September 30, Paushak's financial position showed:
- Total assets of ₹619.86 crore
- Equity share capital of ₹3.08 crore
- Other equity of ₹477.19 crore
Corporate Actions
The company has undertaken significant corporate actions, including:
- Reclassification of authorized share capital to ₹20.00 crore divided into 4 crore equity shares of ₹5 each.
- Sub-division of existing shares from face value of ₹10 to ₹5 each.
- Issuance of bonus shares in the ratio of 3:1, allotting 1,84,92,684 new equity shares.
These actions are aimed at enhancing shareholder value and improving stock liquidity.
Outlook
While Paushak has managed to grow its revenue, the decline in profitability and EBITDA margin suggests challenges in cost management and operational efficiency. The company's focus on specialty chemicals and recent corporate actions indicate efforts to strengthen its market position and create value for shareholders. However, investors may need to watch closely how Paushak addresses the profitability concerns in the coming quarters.
Historical Stock Returns for Paushak
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.83% | -4.12% | -21.40% | -0.69% | -9.25% | +32.55% |
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