ARIES AGRO Stock Think After Q4 Results

Invest in the ARIES AGRO Stock only after the Q4 results are announced. Check out Why. Aries Agro declared (disapponting) its consolidated financial performance for the third quarter ended 31st Dec 2008. Net sales for the quarter rose 7.33% but EBIDTA fell 69% at Rs.2.70 crore and net profit was down at a paltry Rs.53 lakhs, down 89%. Tax provision was down and that helped the company stay in the black.
The company has explained that the reduction in profit was due to the unprecedented fall in the prices of key raw material. The stock of raw material has been valued at market value wherever the same is lower than cost as required by relevant accounting standard.
The company is into manufacturing of micronutrients and other nutritional products for plants at Mumbai, Hyderabad, Bangalore and Kolkata. Aries Agro had gone public in December 2007 to raise funds to set up new units at Ahmedabad, Lucknow, Medak and a new unit in Maharashtra. Its unit at Medak has gone on stream and recently it set up micro-nutrient manufacturing unit at Lucknow. The fourth unit planned in Maharashtra is to be implemented by end of June 2009. This is expected to take the aggregate capacity to 100,800 MT.
It had issued shares at Rs.130. On 5th March 09’, it touched a new low atRs.24.50 and continues to languish at these levels. One can take a call on investing in the stock only after the Q4 results are announced. thanks