India's Jubilant Ingrevia posts Q4 profit slump as supplements faced headwinds

Jubilant Ingrevia

16/05/2023 11:53

BENGALURU, May 16 (Reuters) -    India's Jubilant Ingrevia Ltd  JUBN.NS  on Tuesday
reported an almost 24% slump in fourth-quarter profit as lower chemicals price and sustained
challenges in the supplements business dented revenue.
    Consolidated net profit fell to 523.1 million rupees ($6.4 million) for the three months
ended March 31 from 685.9 million rupees a year earlier, marking the fourth straight quarter of
earnings drop.
        Margins on the earnings before interest, taxes, depreciation and amortisation (EBITDA)
shrank to 9.7% from 11.7% a year earlier, hurt by the challenges in niacinamide business and
specialty  products for the agrochemicals customers, the company said. 
        Overall revenue was down due to lower prices of acetic acid and sustained "headwinds" in
the niacinamide business, Chairman Shyam S Bhartia and Co-Chairman Hari S Bhartia said in a
statement.
    Income from operations dropped 11.5% to 11.29 billion rupees after the nutrition and health
solution business, which makes supplements contracted about 25%.     
    Additionally, the company reported a sharp drop in revenue from the chemical intermediates
business as the price of feed stock fell. 
    The board also declared a final dividend of 2.50 rupees per share.
    Jubilant shares were last down 5.9%, extending the losses so far this year to over 25%.


($1 = 81.7800 Indian rupees)

 (Reporting by Priya Sagar in Bengaluru; Editing by Dhanya Ann Thoppil)
 ((Priya.Sagar@thomsonreuters.com;))