Hatsun Agro curdles

Hatsun Agro went down over 5% to Rs.829 post its disappointing performance for Q3FY18.

Though its revenue from operations rose 7% (YoY) to Rs.1013 crore, net profit slipped by a huge 53% at Rs.15 crore.

EBITDA was also down 6% at Rs.87 crore with margins declining from 9.8% to 8.6%.

Higher costs led by depreciation, raw material and finance outgo pulled down the bottomlines.

The company’s dent currently stands at Rs.1,100 crore and it is planning on a rights issue to riase funds to reduce debt. Its plant is currently working at 75% capacity  and it is in the process of major plant and product line expansion plans.