Tarsons Products tumbled 9.21% to Rs 642.05 after the company's net profit declined 24.92% to Rs 16.12 crore on 13.22% decrease in revenue from operations to Rs 61.32 crore in Q3 FY23 over Q3 FY22.
The company said that the dip in the revenue was mainly driven by temporary slowdown in the life science industry, since the industry is yet recovering from after effects of the Covid pandemic. Loss in revenues related to covid pandemic as compared to previous financial year, however the company's conventional business revenues has shown resilience & is expected to pick up, it added.
Profit before tax in Q3 FY23 was at Rs 21.59 crore, down 25.19% from Rs 28.86 crore posted in the corresponding quarter previous year.
EBIDTA slipped 19.5% to Rs 26.7 crore in Q3 FY23 as against Rs 33.1 crore reported in Q3 FY22. EBIDTA margin reduced to 43.5% in the third quarter as compared to 46.9% registered in the same period last fiscal.
The decline in the EBIDTA margin was due to lower absorption of fixed cost on account of decrease in revenues and it was also impacted by higher spends on the sales promotion, marketing & travelling expenses to fuel the future growth in domestic & export markets.
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Tarsons Products said, We remain optimistic on the industry growth prospects, with the addition of new product categories & capacity expansion. Manufacturing at the new facilities will begin in phases starting from Q2FY24.
Rohan Sehgal, whole time director for Tarsons, said, Due to political uncertainty and growing recessionary trends, our export revenues declined by 17% during the quarter and remained flat for 9MFY23. These are difficult times for not only our industry, but for the entire world, and we are standing firm and attempting to sail through these challenging times.
He further added, Our capacity expansion is proceeding smoothly, and commissioning is scheduled for Q2FY24. These capabilities would propel the company's next phase of expansion, which would include the addition of high-value products, this would further strengthen the "Tarsons" brand. We believe that these market conditions are temporary in nature and in the long term we see plastic labware market continue to grow both domestically and internationally and so will Tarsons.
Tarsons Products is engaged in manufacturing and selling of plastic laboratory products and certain scientific instruments. The company caters to both domestic and international markets.
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