Alkyl Amines shares plunge 4% as ammonia shortage from Iran war forces production halt at 3 sites

Shares of Alkyl Amines Chemicals tanked as much as 4% to their day's low of Rs 1,212 on the BSE on Tuesday after the company said it has temporarily suspended the manufacturing of certain products at its Patalganga, Kurkumbh and Dahej plants due to the non-availability of ammonia, a key raw material used in the production of methylamines, ethylamines and their derivatives.The company said the disruption stems from the ongoing geopolitical conflict in the Middle East, which has affected global logistics networks as well as international crude oil and petrochemicals supply chains. The situation has also impacted the availability of liquefied natural gas (LNG), a critical input used in ammonia production.As a result, several ammonia manufacturers have invoked force majeure and indicated their inability to supply the product during this period. Due to the shortage of ammonia, Alkyl Amines said this situation also constitutes a force majeure event arising from the ongoing geopolitical conflict. Also read: IDBI Bank sale may stall as bids trail reserve priceHowever, the manufacture of other products at these sites that do not require ammonia will continue.The company said the financial and operational impact of the ongoing force majeure event cannot be estimated at this stage. It added that it is closely monitoring developments and exploring alternative sourcing arrangements for ammonia, and will inform stock exchanges of any material updates.Alkyl Amines share price performanceThe stock has been a market laggard, plunging 19% in the last one month. The share price has fallen nearly 40% in the last six months and is down over 20% since the beginning of the year.Alkyl Amines Q3 snapshotNet profit for the quarter stood at Rs 43 crore, marking a 1.4% decline from Rs 43.6 crore reported in the same period last year.Revenue fell 4.6% year-on-year to Rs 354 crore, compared with Rs 371.2 crore in the corresponding quarter of the previous financial year.EBITDA slipped 0.8% to Rs 67 crore from Rs 70.4 crore a year earlier, indicating some pressure on operating performance. As a result, EBITDA margin eased slightly to 18.9% from 19% in Q3 last year.Sensex, Nifty today: Catch all the LIVE stock market action here (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)