Shares of Mangalore Chemicals and Fertilisers Ltd. tumbled in trade on May 17, 2021 to day's low price of Rs. 86.40 versus its previous close of Rs. 95.9 per share on the NSE. This is an approximate 10 percent loss in the stock price of the fertilizer company.
On Saturday (May 15, 2021), the company announced its audited financial results for the quarter and the year ended March 31, 2021. The profit after tax figure came in at a good 14.73 crore verus the previous December ended quarter which posted PAT of just Rs. 0.8 crores. Net sales turnover at the firm also grew sequentially to Rs. 598 crore versus Rs. 327 quarter in the previous quarter and Rs. 563 crore in the same quarter a year ago.
Notably the other income at the firm has taken a hit which came in at Rs. 4.32 crore versus Rs. 6.95 crore in the December quarter. Nonetheless, total income during the quarter under review almost doubled to Rs. 602 crore versus Rs. 334 crore income posted in December quarter.
Also the company recommended a dividend of Rs.1.00 per equity share of Rs. 10 each for the financial year ended March 31, 2021, which is subject to approval of the members at the ensuing Annual General Meeting.
Reason for 10% fall in share price of Mangalore Chemicals and Fertilisers on May 17
The losses in the share price of the fertilizer company have come in probably as the latest PIB release on Saturday suggests that the government is doing all its bit to protect farmers' interest amid the pandemic crisis. In a farmer-friendly move, the centre is working to ensure that farmers get the fertilizers at subsidized rates. Furthermore, fertilizer companies' despite the hike in raw material prices internationally are being nudged to cut on cost.
Another reason is that the scrip of late has seen a run up in price and is trading close to its 52-week high price of Rs. 101 and so there is seen profit booking in the counter.
Last at around 11:30 the scrip of Mangalore Chemical traded weak by over 8 percent.