The stock of agrochemical company fell below its previous low of Rs 462.30, touched on January 27, 2023. With today’s decline, it has corrected 61 per cent from its record high level of Rs 945, hit on debut day i.e. March 5, 2021. Heranaba had issued shares at Rs 627 per share through its initial public offering (IPO).
In Q3FY23, the company’s revenue declined 29 per cent YoY at Rs 280 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) down 65 per cent YoY to Rs 26.4 crore, and margin contracted 965 bps to 9.41 per cent from 19.06 per cent in Q3FY22.
The management said revenue impacted by challenging global macros including prolonged geopolitical concerns, rising inflation in major economies and slowdown in demand. The domestic technical business witnessed lower demand due to challenging market conditions coupled with higher inventory. The company’s export business was impacted by volatile global macroeconomics.
The Ebitda margins were suppressed during the period due to higher raw material prices and an increase in power & fuel costs. The near-term outlook is challenging for the entire agrochemical industry. However, Heranba will continue to diversify its product portfolio, widen its distribution network and sharpen its R&D focus for creating sustainable growth, the management said.
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