Atul slumps post Q4 numbers

Atul Ltd is currently the top loser on the BSE, down almost 4.5% at Rs.1719 and this is after hitting an intra day low of Rs.1708.

The stock has slipped after it declared its Q4FY16 numbers as its overall performance was muted. Its topline was stagnant at Rs.606 crore but it was thanks to the 4% drop in costs and other income was up from Rs.1 crore to Rs.15 crore. The net profit for the quarter was up 40% at Rs.63 crore.

It was profit booking post the numbers that the stock price has slipped down but otherwise the tidings are good in the company. Another good news which came in was that leading global chemicals and paints players, Akzo Nobel NV, has commissioned a 'feasibility study' for a proposed joint venture with Atul Ltd to manufacture monochloroacetic acid (MCA), a key raw material for crop protection and other chemicals, in India.

The two companies plan to install a MCA plant at Atul's facility in Gujarat and this is to bring together Akzo Nobel, a producer MCA, and Atul, an Indian bulk consumer of MCA for its production of crop protection chemicals.