Cosmo Ferrites blamed the dismal earnings on the subdued order flows from Europe due to recession fears and chip shortages.
Cosmo Ferrites Ltd reported a net loss of ₹0.46 crores in the quarter ending December 2022, down from earnings of ₹4.08 crores a year ago.
The soft ferrite core exporter reported a 32.78% decline in quarterly net sales to ₹23.46 crores from ₹34.75 crores in December 2021. EBITDA fell 80.07% to ₹1.83 crore in December 2022 from ₹9.18 crore in December 2021.
The company said that subdued order flows from Europe due to recession fears and chip shortages resulted in lower year-on-year revenue and had a more than proportional impact on EBITDA.
Commenting on the company’s performance chairperson, Ambrish Jaipuria, said “The performance during the quarter remained affected due to the same factors we experienced in the last quarter. We hope to see recovery in the coming quarters. We are working on some good prospects for substantial and steady business in the automotive sector, electric vehicles included. We expect customer approvals in FY 23-24 which should lead to significant margin expansion.”
The company said that the flow of export orders had started picking up gradually. It remained optimistic and expects to gain momentum in the coming months. The company announced the commissioning of a new kiln in the first quarter of FY24 for valued added speciality cores, hoping for an uptick in the performance.
Cosmo Ferrites shares closed at 205.50 on February 09, 2023, on the Bombay Stock Exchange (BSE) and have given -49.40% returns over the last 6 months and -46.55% over the last 12 months.
Established in 1986, Cosmo Ferrites produces manganese (MnZn) based soft ferrite cores in India and exports them to more than 50 countries across the globe. The company also manufactures wire wound magnetic components, a forward integration of soft ferrites. The company’s manufacturing facility is located in Himachal Pradesh.