NACL Industries Q3 Results: Stock falls 4% despite narrower net loss; Here's why

Shares of NACL Industries Ltd. were trading lower even as its third quarter net loss narrowed when compared to the same quarter last year.

The company's board has approved the extension of an inter-corporate loan given to NACL Spec-Chem Ltd., a wholly-owned subsidiary worth ₹55 crore for a two-year period. The loan figure, being disbursed from time-to-time, will see a higher rate of interest at 10% from 7.5% initially.

The board has also approved the investment of ₹20 crore in NACL Spec-Chem Ltd. by subscribing to the Compulsorily Convertible Debentures in one or more tranches.

NACL Industries reported a net loss of ₹10.2 crore in the third quarter compared to a loss of ₹36.2 crore in the previous year.

Its revenue increased by 18% to ₹318.8 crore from ₹267.8 crore in the third quarter last year.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) improved to a positive ₹6.6 crore compared to an EBITDA loss of ₹26.1 crore in the same period of the previous fiscal.

EBITDA margin for the quarter stood at 2.1%.

Shares of NACL Industries are currently trading 4.1% lower on Thursday, after the earnings announcement, at ₹152.47. The stock has more than doubled in value over the last 12 months, gaining as much as 144%.

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