Chambal Fertilisers reports 26% slump in Q3 profits on weak demand

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(Reuters) – India’s Chambal Fertilisers and Chemicals Ltd reported a near 26% slump in quarterly profit on Tuesday after a weak demand due to erratic monsoon led to a pile-up of unsold stock.

The agro-products manufacturer’s consolidated net profit fell to 3.24 billion rupees ($39.18 million) for the three months ended Dec. 31, from 4.35 billion rupees a year earlier.

The company, like its peers, has been hit by the extended monsoon that led to crop damage and the need for lower levels of pest control.

Total expenses rose 84% to 78.24 billion rupees, mainly as inventory costs skyrocketed to 20.16 billion rupees from 2.33 billion rupees a year earlier.

The company’s revenue from operations fell 75% to 82.96 billion rupees during the quarter.

The fertiliser maker’s shares, which dropped 21% in 2022, fell as much as 3.4% to 284.25 rupees, lowest in over one month, after the results were reported.

($1 = 82.6930 Indian rupees)

(Reporting by Kashish Tandon; Editing by Sohini Goswami)

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