Tuticorin Alkali Q1 FY27 Results (NSE: TUTIALKA)
Signal: Steady quarter
The read
The quarter marks a deterioration in earnings quality: revenue grew 5.99% YoY, but gross margin fell 2,122bps from 75.11% to 53.89% and finance cost rose 218.52%, driving PBT down 50.37%; other income rose to ₹382.10 lakh and lower tax softened the PAT decline to 31.82%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹80.71 Cr | +5.99% | -3.27% |
| Net profit | ₹6.73 Cr | -31.82% | |
| EPS | ₹0.55 | -32.10% |
P&L walk
Standalone revenue increased 5.99% YoY but gross margin fell to 53.89% from 75.11% as material-related costs rose sharply; lower power and other expenses did not offset finance cost growth of 218.52%, while higher other income and lower tax cushioned the 50.37% PBT decline to a 31.82% PAT decline.
Key positives
- Revenue from operations increased 5.99% YoY to ₹8,071.33 lakh despite a 3.27% QoQ decline.
- Power and fuel charges fell 16.40% YoY to ₹1,342.03 lakh, reducing power intensity to 16.63% of revenue from 21.09%.
- Other expenses declined 20.44% YoY to ₹1,401.43 lakh, and EPS broadly tracked PAT with a 32.10% decline.
Key concerns
- Gross margin compressed 2,122bps YoY to 53.89% as cost of materials consumed rose 66.44% versus revenue growth of 5.99%, indicating substantial cost absorption.
- Finance cost increased 218.52% YoY to ₹479.98 lakh, a major drag on PBT and a sharper concern than the modest 4.79% increase in depreciation.
- PBT fell 50.37% YoY to ₹758.55 lakh even as revenue grew, showing that operating improvement did not flow through to pre-tax earnings.
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