Atul Q3 Review - Sales Drop; Margin Stays Above 25%: Dolat Capital
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Dolat Capital Report
Atul Ltd.’s Q3 FY21 sales de-growth of 8.5% YoY to Rs 9.5 billion manifests pressure in pickup of volumes amid the pandemic.
However, the company has divulged prudence in cost control by consistently reporting Ebitda margins over 25% (Q3 FY21 Ebitda margin: 25.5%, up 160 basis points YoY).
Profit after tax grew by 11.6% YoY to Rs 1.88 billion, given a higher other income of Rs 373 million (approximately Rs 200 million of dividend income seems to have flown in from Majesco’s share) and a lower tax rate compared to Q3 FY20, at 23.2%.
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