Shares of Clariant Chemicals tumble over 5% on disappointing results

Specialty chemicals maker Clariant Chemicals posted a net loss of Rs 6.1 crore for the Oct – Dec ’13 quarter, after having divested its business making textile chemicals, paper chemicals and emulsions ( TPE) for Rs 209 crore on 30th September 2013.

The company announced Rs 20 per share as final dividend for year 2013, in addition to Rs 10 per share distributed as interim dividend in Aug ’13.

Speaking on Clariant Chemicals (India) Ltd’s performance, the company’s Vice Chairman and Managing Director Dr. Deepak Parikh said, “Clariant’s recent business developments are a representation of our accelerated growth plans in the market. India is our key focus region and we plan to invest in the business to explore new opportunities and improve Clariant in India’s profitability to provide value to all our stakeholders.”

During 2013 Clariant Chemicals sold its leather chemicals business, in addition to the TPE business. It acquired masterbatches maker Plastichemix Industries, while expanding its Azo pigments capacity in Roha.

For the year ended Dec ’13 Clariant’s sales were 13.8% higher at Rs 1248 crore, while net profit was 65% higher at Rs 166.8 crore, mainly due to Rs 112.25 crore of exceptional gains on sale of businesses.

Even after today’s fall, the scrip has gained nearly 11% in last one year and has market capitalisation of Rs 1620 crore.