WATA Chemicals Limited – a producer and seller of a variety of acids – witnessed a big fall in revenue in the July-March period of last fiscal year on the back of a decline in sales of its three major products amid the pandemic.
In the first nine months of the 2020-21 fiscal year, the company's revenue fell 32.78% year-on-year to reach Tk46.03 crore, while its net profit dropped by 44.53% to Tk7.10 crore.
In the third quarter – from January to March – of FY21, WATA Chemical's revenue and net profit fell by 30% and 66.88% to reach Tk13.54 crore and Tk1 crore, respectively, when compared to the corresponding period of the previous year.
WATA Chemicals produces alum and zinc sulphate, magnesium sulphate, sulphuric acid, basic chrome powder, and linear alkyl benzene sulphonic acid.
During the pandemic, sales of sulphuric acid increased but that of alum sulphate, zinc sulphate, and magnesium sulphate decreased.
Ali Ahsan, chief financial officer (CFO) of the company, told The Business Standard, "Due to the Covid-19 disaster, the company was unable to continue consistency in the sales and production processes."
"The demand for our three main products has declined because of the pandemic. As a result, revenue and profit fell. As the pandemic gets normal, we hope to rebound from the pandemic shock."
WATA Chemicals Limited was incorporated in 1981 and was listed on the stock exchanges in 1992.
But due to non-compliance with listing regulations, it was cast off to the over-the-counter (OTC) market.
After returning to the maid board, it continued to make good profits.
In FY20, it made a profit of Tk11.93 crore and paid a 35% cash dividend to its shareholders.