FACT Share Price Plunges 5% Following Significant Decline in Q4 Profit
Fertilisers and Chemicals Travancore Ltd Sees 95.5% Drop in Quarterly Profit
Shares of Fertilisers and Chemicals Travancore Ltd (FACT) declined nearly 5% on May 29 after the company reported a sharp drop in quarterly profit despite strong revenue growth. The stock was trading at Rs 878.85, down 4.82% on the National Stock Exchange in afternoon trade.
FACT reported a 95.5% year-on-year decline in net profit for the March quarter at Rs 3.16 crore, compared with Rs 70.9 crore in the corresponding quarter last year. The sharp fall in profitability came amid higher expenses and lower other income during the quarter. Revenue from operations, however, rose 40.9% year-on-year to Rs 1,484 crore from Rs 1,053 crore a year ago, although it declined 5.4% sequentially.
| Quarter | Revenue from Operations (Year-over-Year) | Revenue from Operations (Sequential) |
|---|---|---|
| March 2026 | 40.9% (Rs 1,484 crore) | -5.4% (Rs 1,484 crore) |
| March 2025 | - | - |
The company's total expenditure surged to Rs 1,512 crore in the quarter from Rs 1,042 crore a year ago, while finance costs increased to Rs 64.3 crore from Rs 60.3 crore. Other income also fell to Rs 34 crore from Rs 59.9 crore in the year-ago period. For the full financial year 2025-26, FACT reported a net loss of Rs 39.6 crore compared with a net profit of Rs 41.2 crore in the previous fiscal, even as annual revenue from operations jumped 41.3% to Rs 5,724 crore.
In a related development, the India Meteorological Department (IMD) released its latest monsoon bulletin. The June-September southwest monsoon seasonal rainfall over India is expected to be 90 per cent of the long-period average with a model error of 4 per cent. While the Northeast is likely to witness normal rainfall this monsoon season, the remaining parts of the country may see below normal rainfall.
The long-period average (LPA) of seasonal rainfall over the country as a whole, based on data from 1971 to 2020, is 87 cm. LPA refers to the rainfall recorded over a particular region for a given interval, such as a month or season, averaged over a long period of time, typically 30 to 50 years.
Investor Takeaway
Investors should be cautious of the sharp decline in profitability and consider the impact on the company's stock price.
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