Atul's bottomline increases in Q2FY16

Atul recently declared its Q2FY16 results. The company's revenue decreased by 2.64 per cent to Rs 645 crore in Q2FY16 as compared to the same period in the previous financial year. Its total expenditure declined by 7.97 per cent to Rs 520 crore in Q2FY16 on yearly basis. Atul's total expenditure reduced mainly due to a 10.33 per cent reduction in raw material prices during the quarter.

Atul's EBITDA increased by 24.48 per cent to Rs 124.59 crore in Q2FY16 as compared to the same period in previous fiscal year because of ease in raw material prices. The company's EBITDA margin expanded by 468 basis points to 19.32 per cent in Q2FY16 on yearly basis. Its PBT also rose by 40.45 per cent to Rs 120.97 crore in Q2FY16 on yearly basis as other income increased by 73.01 per cent to Rs 14.81 crore during the quarter. The PAT of the Atul increased by 42.98 per cent to Rs 84.46 crore in Q2FY16 as compared to same period in previous financial year. The company's PAT margin expanded by 418 basis points to 13.1 per cent in Q2FY16 on yearly basis.

On the segment revenue front, Atul earned 68.05 per cent from Performance Chemicals segment and remaining 31.95 per cent from Life Sciences segment during September 2015 quarter.

Atul's shareholding pattern indicates that FII holdings contracted by 39 basis points to 6.86 per cent while DII holdings expanded by 12 basis points to 13.57 per cent during Q2FY16. The share price of the company 6.98 per cent on bourses in early trades and is trading at Rs 1725 on intraday basis.

Atul is in business of serving adhesives, agriculture, animal feed, automobile, chemical, composites, construction, cosmetic, defense, dyestuff, electrical and electronics, flavor and fragrance, food, glass, home care, horticulture, hospitality, paint and coatings, paper, personal care, pharmaceutical, plastic, polymer, rubber, soap and detergent, textile and tire industries. The Company operates in two segments namely Life Science Chemicals, and Performance and other Chemicals. The Life Science Chemicals segment includes fungicides, herbicides, insecticides, pharma intermediates and PAA. The Performance and Other Chemicals segment includes epoxy resins, hardeners, sulfones, textile dyes and p-Cresol. Its business divisions include aromatics, bulk chemicals, colors, crop protection, floras, pharmaceuticals and polymers.