India's Chambal Fertilisers posts Q3 profit drop on high inventory costs

Chambal Fertilisers and Chemicals

07/02/2023 09:18

Feb 7 (Reuters) - India's Chambal Fertilisers and
Chemicals Ltd  CHMB.NS  reported a near 26% slump in quarterly
profit on Tuesday after a weak demand due to erratic monsoon led
to a pile-up of unsold stock.
    The agro-products manufacturer's consolidated net profit
fell to 3.24 billion rupees ($39.18 million) for the three
months ended Dec. 31, from 4.35 billion rupees a year earlier. 
    The company, like its peers, has been hit by the extended
monsoon that led to crop damage and the need for lower levels of
pest control.
    Total expenses rose 84% to 78.24 billion rupees, mainly as
inventory costs skyrocketed to 20.16 billion rupees from 2.33
billion rupees a year earlier.
    The company's revenue from operations fell 75% to 82.96
billion rupees during the quarter.
    The fertiliser maker's shares, which dropped 21% in 2022,
fell as much as 3.4% to 284.25 rupees, lowest in over one month,
after the results were reported.     
($1 = 82.6930 Indian rupees)
 (Reporting by Kashish Tandon; Editing by Sohini Goswami)
 ((Kashish.Tandon@thomsonreuters.com;))