Bodal Chemicals Reports YoY Net Loss of Rs 19.54 Crores in Q1 FY20-21

Bodal Chemicals Ltd., a chemicals manufacturer based in India announced its results for the first quarter ended June 30, 2020.

Q1 Results- QoQ

The company reported a net loss of Rs 19.54 crores ($2.6 miilion) for the period ended June 30, 2020 as against net profit of Rs 23.09 crores ($3.1 miilion) for the previous quarter.

Net sales declined 67.1% to Rs 122.29 crores ($16.3 miilion) during the period ended June 30, 2020 as com-pared to Rs 372.15 crores ($49.7 miilion) during the previous quarter.

Q1 Results- YoY

The company reported a net loss of Rs 19.54 crores ($2.6 miilion) for the period ended June 30, 2020 as against net profit of Rs 27.48 crores ($3.7 million) for the prior-year quarter.

Net sales declined 67.3% to Rs 122.29 crores ($16.3 miilion) during the period ended June 30, 2020 as com-pared to Rs 374.16 crores ($50 miilion) during the prior-year quarter.

On the impact of the pandemic on its business, Bodal Chemicals Ltd’s Executive Director, Ankit Sureshbhai Patel said, “The lockdown in the country, for around 40 days from March ending due to COVID-19, significantly impacted our business in Q1 FY ’21. We started our partial operations from May beginning, but there were issues with respect to labor, transportation and lower demand across the globe. The prices of our raw materials as well as finished goods came down in Q1 FY ’21. During Q1 FY ’21, the average sales price of Vinyl Sulphone was INR 163 ($2.18) and H-Acid was INR 347 ($4.64).”

“The business scenario started improving gradually from mid of June 2020 in terms of better demand, higher utilization of plants and more dispatches. The prices of our sales goods improved after June 2020 due to increase in demand and few supply side disruptions in the domestic market. The current prices of Vinyl Sulphone are around INR 160 ($2.14) and H-Acid is around INR 355 ($4.74). We believe demand should further improve gradually going ahead because, along with India, many countries globally have also opened up,” he added.