Manaksia Aluminium's Q1 Net Profit Drops 54.62%

May 22, 2024 : Manaksia Aluminium Company Limited reported a significant decline in its standalone net profit for the quarter ending March 31, 2024. The company’s net profit plunged by 54.62% compared to the same period in the previous fiscal year.

Manaksia Aluminium disclosed this financial information earlier today. The company’s standalone net profit for the March 2024 quarter amounted to Rs. 1.57 crore, compared to Rs. 3.46 crore for the March 2023 quarter. This represents a substantial decrease in profitability.

In contrast to the decline in net profit, Manaksia Aluminium did experience a modest increase in sales revenue during the quarter. The company’s standalone net sales for the March 2024 quarter reached Rs. 117.71 crore, reflecting a 7.13% rise compared to Rs. 109.88 crore in the prior year’s corresponding quarter.

While the reasons behind the sharp drop in net profit were not explicitly stated in the company’s announcement, it is important to note that Manaksia Aluminium’s full-year financial performance for the fiscal year ending March 2024 also reflected a decline in profitability. The company’s net profit for the full year dipped by 42.62% compared to the previous fiscal year.

Analysts and investors will likely be awaiting further information from Manaksia Aluminium to understand the factors contributing to the decline in profitability. The company may elaborate on these factors in its quarterly report or during future investor communications.

This news comes amidst broader challenges facing the aluminum industry. Fluctuating metal prices, supply chain disruptions, and rising energy costs are just some of the factors that could potentially impact the profitability of aluminum producers.

The extent to which these industry-wide trends have influenced Manaksia Aluminium’s financial performance remains unclear at this time. However, the company’s financial results underscore the need for close monitoring of market conditions and strategic adaptation to ensure long-term sustainability.

Also Read, Boeing Supplier Spirit AeroSystems to Lay Off 400 Employees