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Tarsons Products shares drop after high Covid-19 base dents financials

Tarsons Products shares drop after high Covid-19 base dents financials

Tarsons Products shares drop after high Covid-19 base dents financials
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By CNBCTV18.com Nov 7, 2022 3:54:37 PM IST (Published)

On a sequential basis, the company's revenue increased 4 percent while EBITDA margin expanded 100 basis points.

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Shares of Tarsons Products ended nearly 8 percent lower on Monday after the company reported a decline in overall sales on a year-on-year basis for the September quarter.

Revenue declined 6 percent from last year due to a high base owing to the Covid-19 pandemic. However, the company says that the numbers were resilient on a like-to-like basis.

The company's EBITDA margin declined 200 basis points to 46 percent from 48 percent last year due to an adverse product mix, higher commodity prices and manpower costs. Margin was also hit due to manpower costs for their upcoming facility and marketing and branding expenses in the export markets.

On a sequential basis, the company's revenue increased 4 percent while EBITDA margin expanded 100 basis points.

The company's export business grew 11 percent from last year. 41 percent of the overall exports revenue came from branded products. Exports contributed 38 percent of the overall revenue.

Tarsons' management also mentioned that their expansion and commissioning of the upcoming facility is on track and will take place in the first half of the next financial year.

Shares of Tarsons Products ended 7.6 percent lower at Rs 717.7.

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