Clariant Chemicals India 39% sales decline in Q1

Q1 sales stood at Rs 128.9 crore

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Clariant
Photo - Clariant

Clariant Chemicals India, a specialty chemical company, has recently announced its first-quarter financial results for the quarter ended 30 June 2020. The company reported profit before tax of Rs 4.1 crore (approximately US $ 0.55 million) for the quarter ended June 2020, as compared to profit before tax of Rs 10.5 (US $ 1.40 million) for the quarter ended June 2019 – witnessing a drop of 61% caused by the impact of Covid-19 outbreak and subsequent continued nationwide lockdown.

The company reported a decline in sales of 39%, at Rs 128.9 crore (approximately US $ 17.23 million), for the quarter ended June 2020 as against Rs 209.8 crore (approximately US $ 28 million) for the corresponding quarter in the previous year.

“We closed our offices and laboratories across the country on 16 March, well before the national lockdown, as we wanted to be abundantly cautious with managing the Covid-19 risk at the workplace. Subsequently, we closed our plants as well. However, we started manufacturing gradually to bolster the essential services sectors to support the country to cope with the pandemic. The financial performance of the company was impacted in the first quarter (April to June) 2020-21 by this disruption caused by Covid-19, although there were definite signs of recovery towards the end of the Q1FY20-21. Our continued strong focus on excellence in execution has given us the resilience to stay profitable, reduce costs and manage cash to prepare us to weather this storm,” said Adnan Ahmad, vice chairman and managing director of Clariant Chemicals India.

The sales relating to continuing and discontinued operations is as below (in crore):

Particulars3 months ended 30 June 20203 months ended 30 June 2019
Sales from continuing operations128.9209.8
Sales from discontinued operations42.486.0
Total171.3295.8

Headquartered in Thane, Clariant Chemicals India is a Switzerland-based specialty chemicals manufacturing company. The main business activity of Clariant Chemicals India involves manufacturing specialty chemicals for domestic and industrial use. It manufactures and markets textiles, leather, paints, plastic, printing inks, and agrochemicals products in India.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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