Sudarshan Chemical Industries Ltd first half sales at Rs.203 Crores

The company has recorded sales of Rs.2030 Million for the 6 months ended 30th September, 2006 as compared to Rs.2066 Million for the corresponding previous half year. The sales have marginally decreased by 2%. The sales for the quarter ended 30th September, 2006 were Rs.1153 Million as compared to Rs.1134 Million as compared to the previous year's quarter.

About two thirds of the business of the company is Pigments and this has shown a growth of about 16% in terms of sales as well as exports have increased by 13% respectively. The paint, ink and plastic industry in the pigment division continues to show growth.

The agro division's sale aggregated to Rs.603 Million for the half year ended 30th September, 2006 as against Rs.838 Million recorded for the previous half year ended 30th September, 2005 which shows a net decrease of 39% in sales. The sales of the agro division for the quarter ended 30th September, 2006 were Rs.399 Million as against Rs.492 Million recorded in the same quarter of the previous year.

In case of Agro Division, the sales in paddy, wheat, vegetables and fruits did not take off as planned. Also the threate from Chinese market, heavy rains in Maharashtra, Madhya Pradesh, Andhra Pradesh and West Bengal affected the overall sales of the agro division. This was further aggravated by the substantial increase in the prices of raw materials like solvents, which could not be passed on to customers due to the competitive pressure in the market.

The management has initiated various measures which should help the agro division to perform better in the remaining part of the year.

Source : Equity Bulls

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