Atul Q3 Review - Sales Drop; Margin Stays Above 25%: Dolat Capital 
A labourer sprays insecticide and pesticide on a tea estate in Coonoor, Tamilnadu, India. (Prashanth Vishwanathan/Bloomberg News)

Atul Q3 Review - Sales Drop; Margin Stays Above 25%: Dolat Capital 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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%.

Click on the attachment to read the full report:

Dolat Capital Atul Q3FY21 Result Update.pdf

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