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News: Revenues de-grew ~7% YoY to ₹ 146 crore, pulled down by 6% de-growth in Human Nutrition and 31% de-growth in Bio processing. On the other hand, Animal Nutrition and Specialised manufacturing registered a growth of 5% and 17%, respectively. EBITDA de-grew ~17% YoY to ₹ 42 crore despite 107 bps GPM expansion (77.6%) due to higher employee expenses. EBITDA margins contracted 346 bps to 29%.
Views: Geography wise (residing in all segments), US sales (39% of the revenues) increased by 21% YoY while there was a de-growth of 35% in Europe, 25% in Asia (ex-India) and 49% in the rest of the world. India sales (48% of the revenues) also declined 15%. We will wait for management commentary to ascertain whether the slowdown was attributable to delayed shipment due to Red Sea crisis (likely possibility) or any other reason. The results are trending below the management guidance of double-digit growth.
Impact: Negative