Manali Petro hits new low

Manali Petrochemicals posted a very disappointing set of earnings with net profit falling 90% to Rs.12 crore, following economic downtrend and an increase in raw-material cost.

Its revenue from operations was down 35% at Rs.261 crore while raw material costs rose 16% to Rs.200 crore.

The company said that though sales volume could be maintained, product prices had been falling on the one hand and the input costs going up on the other, wearing down the margins.

The Board approved proposals for investment of up to $35 million in its wholly owned subsidiary, Amchem Speciality Chemicals, Singapore for funding its overseas acquisition plans.

The stock price sunk to a new low today at Rs.80.10 from its close of yesterday at Rs.93.55. Volumes rose by a huge 15x.