Himadri Speciality Chemical shares rally 5% company reports strong March quarter results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Himadri Speciality Chemical Ltd surged 5% on Friday, April 26, after the company posted a 51% jump in net profit in the March quarter of the fiscal year 2023-24, compared to the previous year.

The company’s profit after tax  (PAT) soared 51.31% to ₹115 crore in the fourt quarter, compared to the previous year.’s ₹76 crore.

Its revenue increased 14% to ₹1,177 crore in the January-March quarter from ₹1,029 crore in the year-ago period, driven by improved operational performance, Himadri Speciality Chemical said in a stock exchange filing.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) surged 42% to ₹180.1 crore in the March quarter compared from ₹126.5 crore in the same quarter of the previous fiscal, indicating better profitability and cost management.

Also, the company’s operating profit margin (OPM) expanded to 15.2% from 12.3%, reflecting increased efficiency in generating profits from each rupee of sales.

After the release of the fourth quarter results, shares of the company jumped as much as 5% to an intraday high of ₹385 on the BSE.

These numbers indicate significant growth and efficiency for Himadri Speciality Chemical in the fourth  compared to the same period last year.

In a move to expand its production capabilities, the company has decided to add 70,000 metric tonne per annum (MTPA), sinking carbon black capacity with an investment of ₹220 crore.

This expansion is scheduled to be completed within 18 months and financed through internal accruals.

At present, the company already possesses a speciality carbon black capacity of 60,000 MTPA. Despite this existing capacity, 92% utilisation in FY24 suggests strong demand for the company’s products.

Shares of Himadri Speciality Chemical were trading 2.51% higher at ₹376 apiece on the BSE around 9.40 am.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow