Atul Ltd

Atul Ltd had hit a life time high at Rs.1785 the day it had declared its good performance for Q2FY16. A part of the Sanjay Lalbhai group, Atul Ltd posted a 33% (YoY) jump in net profit at Rs.36 crore and this was on the back of lower costs and an exceptional income of Rs.3 crore. Net sales for the quarter actually dropped 3% at Rs.632 crore while costs fell 7.5%. A 10% reduction in raw material costs is what helped.

EBITDA came in at Rs.125 crore, up 29% and margins improved from 16.84% to 19.78%. Profit before tax and exceptional income of Rs.3 crore rose 37%, which means reduction of costs is what helped improve the overall performance of the company. HIFY16 net profit was at Rs.64 crore, which was 67% of FY15 net profit. Annualised EPS stands at Rs.98.

The company currently has a debt of Rs.296 crore, up from Rs.218 crore (YoY). And of the 46.68% stake of the promoters, 91.84% is pledged, which has gone up sequentially from 91.82% and from 97.14% (YoY).