Jayant Agro tanks 11%

Jayant Agro-Organics, in Q2FY18 was a victim of soaring costs. Despite having posted a good 58% (YoY) jump in revenue at Rs.610 crore, rising costs dented its bottomline – net profit came in at Rs.15 crore, down 1%.

Raw material costs rose by a huge 74%, eating away 74% of the total income. Interest outgo too rose sharply by 62%; consequently total costs rose 61%.

Operating profit was up 18% at Rs.38 crore, sustained only by the higher income though margins told the story of the increased costs, down 210 bps to 6.3%.

The stock price 11% to Rs.414.45 and it continues to remain firmly in the red.