About The CompanyThe company is into manufacturing of micronutrients and other nutritional products for plants at Mumbai, Hyderabad, Bangalore and Kolkata. Aries Agro had gone public in December 2007 to raise funds to set up new units at Ahmedabad, Lucknow, Medak and a new unit in Maharashtra. Its unit at Medak has gone on stream and recently it set up micro-nutrient manufacturing unit at Lucknow. The fourth unit planned in Maharashtra is to be implemented by end of June 2009. This is expected to take the aggregate capacity to 100,800 MT.
Aries Agro declared its consolidated financial performance for the third quarter ended 31st Dec 2008. And as expected, it was no great shakes, infact very disappointing.
YoY, its net sales for the quarter rose 7.33% but EBIDTA fell 69% at Rs.2.70 crore and net profit was down at a paltry Rs.53 lakhs, down 89%. Tax provision was down and that helped the company stay in the black. OPM was down at 8.69% compared to 30.29% in Q3FY089 and NPM was down at 1.71% from 15.52% in Q3FY08. This is pathetic performance knowing that the company has been in commercial existence for the past over 35 years, with over 41 brands, 4,700 distributors, 67,000 retailers and 60 lakh farmers.
The company has explained that the reduction in profit was due to the unprecedented fall in the prices of key raw material. The stock of raw material has been valued at market value wherever the same is lower than cost as required by relevant accounting standard.
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