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Apex Frozen Foods shares tumble after higher costs hit quarterly profit

Apex Frozen Foods shares tumble after higher costs hit quarterly profit

Apex Frozen Foods shares tumble after higher costs hit quarterly profit
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By CNBCTV18.com Oct 31, 2022 2:18:30 PM IST (Published)

Monday's drop means Apex Frozen Foods has given up all the gains of the year and are now negative.

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Apex Frozen Foods Ltd. shares tumbled as much as 8.7 percent in trade on Monday after the company reported a sharp fall in its profits for the second quarter.

The company's net profit for the September quarter declined 38.3 percent to Rs 13.59 crore from Rs 22 crore during the same period last year.
The drop in profitability was attributed to higher raw material costs led by lower supply of raw shrimp during the quarter.

Apex Frozen Foods is an Andhra Pradesh-based integrated producer and exporter of processed shrimp.

The company on Friday announced that its stand-alone total income rose 13.5 percent to Rs 309.1 crore compared to Rs 272.37 crore in the year-ago quarter.

Revenue for the quarter increased 11 percent from last year to Rs 292.8 crore due to better realisations, higher share of RTE products and global shrimp prices.

Following the earnings announcement, shares of Apex Frozen Foods hit an intra-day low of Rs 289.70 on Monday on BSE. At 1:14 pm, the stock was down 8.47 percent to Rs 290.30.

Over the past year, Apex Frozen Foods shares have jumped 9.3 percent on the bourses, while the Sensex has remained broadly flat during the same period.

Apex Frozen Foods is one of the leading exporters of processed shrimp in India. It caters to a wide array of customers such as food companies, retail chains, restaurants, club stores, and distributors spread across multiple geographies in the US, European Union, and China.

Shrimp sales remained muted during the quarter due to lack of raw shrimp supply in specific sizes. For the first six months of the current financial year, Shrimp sales are up 8 percent.
Shares of Apex Frozen Foods are trading 8.5 percent lower as of 2:15 PM. Today's fall meant the stock has given up all the gains for the year and is trading 4 percent lower this year.
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