Gandhar Oil Refinery Q2 Profit Falls 11.3%
The company debuted at Rs 298 apiece on the National Stock Exchange, a premium of 76.33% over the IPO price of Rs 169 apiece, in November.
Gandhar Oil Refinery (India) Ltd., one of the newest entrants to the Indian stock markets, reported a sequential decline in its second-quarter net profit as its top line fell and operating margin contracted.
The net profit of the producer of white oils fell 11.3% over the previous quarter to Rs 48.1 crore in the three months through September, according to its exchange fining.
The company's revenue declined around 6.5% to Rs 1,000.9 crore. Earnings before interest, tax, depreciation and amortisation margin declined to 7.59% from 7.86% in the prior quarter. Raw material prices contributed to lower margins they rose 2% sequentially even as revenue fell.
The company's short-term debt rose. According to its investor presentation, current liabilities more than doubled sequentially to Rs 321.2 crore.
The rise in short-term borrowing was accompanied by an increase in inventory, debtor, creditor and net working capital days. Net working capital days rose to 58 in the second quarter from 46 in the quarter ended June and 31 in the financial year ending March 2023.
Shares of the company debuted at Rs 298 apiece on Nov. 30 on the National Stock Exchange and have since then climbed to Rs 309, 82.8% higher than the IPO price.
