Sabero Organics‘ sales dipped to 100 crores as compared to Rs. 121.94 crores in Q1 FY 2010 representing a steep fall of 17.91%. Sabero Organics‘ operating income fell to Rs. 17.91 crores as compared to 21.63 crores in Q1 FY 2010, representing a fall of 17.20%. The Net Profit was down to 8.42 crores from Rs. 10.57 crores, a whopping 20.34%.
Sabero Organics‘ consolidated diluted EPS stood at Rs. 2.47 as compared to Rs. 3.62 in Q1 FY 2010.
Sabero Organics‘ share price took a hit. At CMP Rs. 71, Sabero Organics‘ share price was down 16.85% in a month and 10.74% in a week.
The silver lining may be that Sabero Organics‘ dismal performance in Q1 FY 2011 may be a one-off isloated aberration. Sabero Organics has stated the following as the reason for the poor financial results.
The Monocrotophos plant was under de-bottlenecking to increase the capacity from 2200 to 4400 tonnes per annum and was expected to start by early April. Trial run started only in Mid May and has been under stabilization till end of July, and has been now been commissioned and de-bottlenecked to the higher capacity. Similarly, the Chloropyriphos plant is under de-bottlenecking to 3000 tonnes p.a, an increase of 50% in capacity and is expected to start up after modifications by September, 2010, Due to these de-bottlenecking exercises, the production of the Monocrotophos and Chloropyriphos plants has been much lower in the current quarter.
Sabero Organics Q1 FY 2011 Results
|
| (Rs cr) | Jun 2010 | Jun 2009 | YOY |
|---|---|---|---|
| Operating Income | 100.10 | 121.94 | -17.91 |
| Total Expenses | 82.19 | 100.31 | -18.06 |
| Operating Profit | 17.91 | 21.63 | -17.20 |
| Other Income | 0.42 | 0.85 | -50.59 |
| PBDIT | 18.33 | 22.48 | -18.46 |
| PBT | 12.67 | 15.38 | -17.62 |
| Adjusted Net Profit | 8.42 | 10.57 | -20.34 |
Sabero Organics has clearly stated that the Monocrotophos plant has been now been commissioned and de-bottlenecked to the higher capacity of 4400 tonnes per annum in July 2010. So that’s a relief.
However, Sabero Organics has also stated that the de-bottlenecking of the Chloropyriphos plant to increase its capacity by 50% will take till September, 2010 to be completed. So there is a bit of pain left for the investors of Sabero Organics.
Hopefully, after the de-bottlenecking exercise of Sabero Organics‘ Monocrotophos plant & Chloropyriphos plant, the production and profits will substantially increase.
Sabero Organics also stated that the activities for the expansion project of the company at Dahej SEZ have been commenced and the project is expected to be commissioned by 03, 2011-12.
Sabero Organics Research Report
About Sabero Organics Gujarat Limited:
Sabero Organics Gujarat Limited is a manufacturer of specialty chemicals and intermediates for the crop protection business. Sabero Organics has a presence in all the three segments of the crop protection industry Herbicides, Fungicides, and Insecticides.
Sabero Organics main products are Mancozeb & Glyphosate. Sabero Organics is the largest producer of these products in India and second largest producer in the world. Mancozeb contributes about 35-40% of Sabero Organics‘ sales. While mancozeb is a fungicide, glyphosate is a herbicide. More information on Sabero Organics share price, stock information, future prospects, jobs, opportunities is also available. An earlier report on Sabero Organics share & stock investment prospects is available here (Sabero Organics share & stock investment prospects).
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