Shares of Insecticides India fell 6% in early trade on May 31 after the company reported poor fourth-quarter results.

The agrochemical company reported a consolidated loss of Rs 29.3 crore in Q3FY23, dragged down by rising input costs. This starkly contrasts the Rs 22.3 crore profit recorded in the same period last year.

Operating results also remained weak due to high raw material costs, with the company reporting an EBITDA loss of Rs 28.3 crore in the fourth quarter, compared with an EBITDA profit of Rs 33.9 crore in the previous period.

Shares of Insecticides India were trading at Rs 451.10 on the National Stock Exchange at 10:53 am, down 3.1% from the previous close. Over-the-counter volume was also high, with 28,000 shares changing hands on the exchange, compared with a one-month daily average of 19,000 shares.

Despite the challenging environment, the company’s operating income rose 8.6% year-on-year to Rs 302 crore in the fourth quarter compared to last year.

The agrochemical industry has struggled in recent quarters due to rising channel inventories and an oversupply at low prices from China.

Indian Insecticides is also struggling in a challenging environment due to sequential declines in its net profit and operating margin pressure over the past two quarters.