Alkyl Amines Chemicals net profit sinks 39% despite 20% increase in net sales
Moneylife Digital Team 16 May 2013

Alkyl Amines Chemicals saw higher cost of raw materials and finance costs put a dent on its bottomline despite rise in net sales

 
Alkyl Amines Chemicals has posted 20% year-on-year (y-o-y) increase in net sales which jumped from Rs80.33 crore recorded in the March 2012 quarter to Rs96.60 crore recorded in the March 2013 quarter. However, operating profit for the three months ended March 2013 went up by just 4% to Rs13.17 crore. Its net profit dipped 39% y-o-y, to Rs3.96 crore. This was due to increase raw material costs, financing costs as well as higher tax outgo. Cost of raw materials jumped 35% y-o-y while sales did not increase high enough to offset the cost.
 
According to the Moneylife database, the company has actually put a series of consistently good quarters as far as sales are concerned. Its average three-quarter y-o-y net sales growth rate is 27% while company saw its net sales increase by 20%. Last three quarters, net sales grew 30%, 17% and 45%, with the last being December 2012 quarter. The company’s market capitalisation is valued at 2.86 times operating profit. Its return on networth and return on capital employed stood at 12% and 23% respectively.
 
Moneylife had covered Alkyl Amines in the 18 April 2013 issue, and we had recommended investors to wait for the company’s share price to come down to Rs140. Currently, it is trading at Rs146 on the Bombay Stock Exchange (BSE). You can check it over here: http://www.moneylife.in/article/alkyl-amines-chemicals-good-chemistry/31972.html.
 
Alkyl Amines is a global supplier of amines and amine-based chemicals to the pharmaceutical, agrochemical, rubber chemical and water treatment industries, among others. 
 
For other company results, you can click here: http://www.moneylife.in/investing/stocks
 
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