Aceto Corporation (ACET) has reported 46.39 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $5.59 million, or $0.16 a share in the quarter, compared with $10.42 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.56 million, or $0.39 a share compared with $12.47 million or $0.42 a share, a year ago. Revenue during the quarter grew 20.39 percent to $190.13 million from $157.93 million in the previous year period. Gross margin for the quarter contracted 199 basis points over the previous year period to 22.26 percent. Total expenses were 93.06 percent of quarterly revenues, up from 89.57 percent for the same period last year. That has resulted in a contraction of 349 basis points in operating margin to 6.94 percent.
Operating income for the quarter was $13.19 million, compared with $16.47 million in the previous year period.
"The third quarter represents our first operating quarter with full inclusion of the recently-acquired Citron and Lucid products. The expansion of our product portfolio also brought us one step further along in our strategic transition towards human health with our human health and pharma ingredients business segments collectively accounting for over 75% of total sales for the first time ever," said Sal Guccione, chief executive officer of ACETO.
Working capital increases marginallyAceto Corporation has recorded an increase in the working capital over the last year. It stood at $248.88 million as at Mar. 31, 2017, up 3.30 percent or $7.95 million from $240.93 million on Mar. 31, 2016. Current ratio was at 2.07 as on Mar. 31, 2017, down from 3.18 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 94 days for the quarter from 134 days for the last year period. Days sales outstanding went up to 102 days for the quarter compared with 101 days for the same period last year.
Days inventory outstanding has decreased to 43 days for the quarter compared with 78 days for the previous year period. At the same time, days payable outstanding went up to 51 days for the quarter from 45 for the same period last year.
Debt increases substantially
Aceto Corporation has witnessed an increase in total debt over the last one year. It stood at $367.79 million as on Mar. 31, 2017, up 213.21 percent or $250.36 million from $117.43 million on Mar. 31, 2016. Total debt was 34.74 percent of total assets as on Mar. 31, 2017, compared with 21.56 percent on Mar. 31, 2016. Debt to equity ratio was at 0.91 as on Mar. 31, 2017, up from 0.39 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
