NAVIN FLOURINE

Till some months ago, this Gujarat based Arvind Mafatlal group company was recognized as one of the largest players in carbon credits. But prices since then have crashed and in the current year they could pretty much become worthless. The company now earns from its mainfray - refrigeration gases, Chemicals/ Bulk Fluorides and Specialty Organofluorines with manufacturing facilities at Surat, Gujarat and Dewas, Madhya Pradesh.Q4 is usually sluggish for this sector thus it makes more sense for a YoY comparison. The company posted a topline of Rs.114 crore, down 27% (YoY). A 22% drop in operating expenses and almost doubling of other income helped the company end Q1FY14 with a net profit at Rs.13 crore, down 31% but sequentially, it turned around from a loss of Rs.8 crore.

The company is back to concentrating on its core business of chemicals and looks like it has finally shed the shadow of carbon credits. But with this major lucrative business off the charts, which enjoyed immense investor fancy, the stock price remains muted. One can expect lower topline and bottomline unless the company manages to ramp up volumes to such an extent that it offsets the lower prices.