Plastiblends India’s shares experienced a 3.85% drop to Rs 191 in morning trade on July 12, following the company’s announcement of a 24% decline in Q1 profit. The profit for the quarter fell to Rs 7.6 crore from Rs 9.9 crore compared to the same period last year, primarily due to higher input costs.
In addition, the company’s revenue witnessed a 4.2% decline, decreasing to Rs 195.7 crore from Rs 204 crore in Q1 FY22-23. The EBITDA margin also dropped to 6.8% from 8% during the period, as stated in a regulatory filing on July 11. Plastiblends India attributed these results to volatile raw material prices and a substantial increase in energy costs per KWH across all manufacturing locations. These factors negatively impacted the company’s profitability.
Despite these challenges, Chairman and Managing Director SN Kabra emphasized the company’s focus on increasing revenue through margin accretive products. Plastiblends India is also prioritizing research and development, expanding its customer base, and pursuing geographical expansion as part of its strategic approach.
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