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Alkali Metals Q2 FY2024 Financial Results: Losses Reported and Key Insights
Team Finance Saathi
17/Dec/2024
What's Covered Under the Article:
- Alkali Metals Ltd. reports a loss of ₹189.50 lakh for Q2 FY24.
- Revenue growth from ₹1,684.09 lakh to ₹2,045.71 lakh, driven by domestic and export sales.
- Increase in operating costs leads to a widening loss despite efforts to reduce operational expenses.
Alkali Metals Ltd., a manufacturer of fine chemicals and pharmaceutical intermediates, has released its un-audited financial results for the quarter ending 30th September 2024. The company posted a net loss of ₹189.50 Lakhs, a significant drop from the profit of ₹9.50 Lakhs recorded during the same period in the previous year.
Financial Highlights:
- Revenue from operations increased to ₹2,045.71 Lakhs, compared to ₹1,684.09 Lakhs in Q2 2023.
- The company’s expenses rose to ₹2,256.46 Lakhs, higher than the revenue, resulting in a negative operating profit before exceptional items and tax.
- The net profit/loss from continuing operations stands at a loss of ₹189.50 Lakhs, with Earnings per Share (EPS) at ₹-1.86 for the quarter.
Despite the rise in revenue, costs related to materials, power, and fuel, along with a rise in employee benefit expenses, have contributed to the loss. The company’s manufacturing expenses and finance costs also increased during the quarter.
The board of directors had already approved these results in the meeting held on 9th November 2024, which were uploaded to the BSE website for public record. The company has made it clear that there are no changes in the financial results from what was previously communicated.
In the balance sheet, total assets stood at ₹10,126.54 Lakhs, with the majority invested in property, plant, and equipment, followed by current assets such as inventories and trade receivables.
The company's shareholders' equity has decreased to ₹4,499.41 Lakhs, showing a reduction in retained earnings. Notably, the company repurchased loans and reduced lease liabilities in line with its cash flow management strategy.
The segment reporting reveals that Alkali Metals has experienced an increase in domestic revenue from ₹909.74 Lakhs in Q1 2024 to ₹1,135.97 Lakhs in Q2 2024. Meanwhile, exports contributed ₹1,135.97 Lakhs to the total revenue, showing the company’s strong presence in international markets.
Cash Flow Overview:
The cash flow statement for the half-year ending 30th September 2024 reports a net increase of ₹3.71 Lakhs in cash and cash equivalents. This is despite a decline in operating profit and some cash outflows related to long-term borrowings and lease payments.
What's Next:
Alkali Metals Ltd. will continue to focus on managing costs, optimizing production efficiency, and exploring new markets to stabilize its financial position moving forward. Investors are advised to closely monitor the company’s future earnings performance, especially as it deals with external market fluctuations and internal cost pressures.
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