Rossari Biotech Limited (Rossari), a Specialty-Chemicals manufacturer providing intelligent and sustainable solutions for customers across industries, has announced its financial results for the quarter ended September 30, 2023, the company announced through an exchange filing.
Consolidated: Q2 FY24 performance overview compared with Q2 FY23
The company's financial report for the period reveals significant growth in various key indicators. Revenue from operations showed a notable increase, reaching Rs. 483.5 crore, compared to Rs. 425.4 crore in the previous period. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also demonstrated a positive trend, standing at Rs. 63.6 crore, compared to Rs. 56.5 crore previously.
Despite a marginal decrease in the EBITDA margin, which was at 13.2% as opposed to 13.3%, the Profit After Tax (PAT) experienced a substantial rise, reaching Rs. 32.9 crore, in contrast to Rs. 23.9 crore. This improved financial performance is further reflected in the Earnings Per Share (EPS), with the diluted EPS standing at Rs. 6.0, up from Rs. 4.3.
Consolidated: H1 FY24 performance overview compared with H1 FY23
Revenue from operations reached Rs. 894.1 crore, a notable increase compared to the previous period's Rs. 860.1 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also demonstrated a healthy upward trend, reaching Rs. 121.3 crore, up from Rs. 114.3 crore in the previous period. The EBITDA margin increased to 13.6%, indicating an improvement from the previous 13.3%.
Furthermore, the Profit After Tax (PAT) witnessed a significant growth, standing at Rs. 62.2 crore, compared to Rs. 52.6 crore. This robust financial performance is further reflected in the Diluted Earnings Per Share (EPS), which rose to Rs. 11.2 from Rs. 9.5.
Commenting on the Q2 FY2024 performance, in a joint statement, Edward Menezes, Promoter & Executive Chairman, and Sunil Chari, Promoter & Managing Director, said, "We are pleased to report a record quarter for Rossari, with the best ever performance both in terms of Revenue and Profits. The flag bearers for this strong performance were our core HPPC and TSC division. While HPPC grew by 21%, TSC was up 5% in revenue as compared to the corresponding quarter in the previous year. In the AHN division, we witnessed subdued performance due to seasonal softness in demand. On the Profit front, PAT surged 38% Y-oY, reaching Rs. 33 crore in Q2 FY24, driven by a significant improvement in revenues."
The Company announces Capacity Expansion Plans
1) Expansion at Dahej Facility of Rossari Biotech Limited
The facility is slated for an expansion to introduce a 20,000 MTPA capacity dedicated to products related to HPPC in the specialty chemical space and producing ingredients for our subsidiary companies o The project is anticipated to entail an investment of Rs. 50 crore.
2) Expansion at Dahej Facility of Unitop Chemicals Private Limited.
With the existing 36,000 MTPA Ethoxylation capacity operating at optimal utilization levels, the Company is set to expand by an additional 30,000 MTPA to meet anticipated future demand. The project is anticipated to entail an investment of Rs. 128 crore. Products based on the Ethoxylation process are used in a variety of industries, including Agro Chemicals, Home and Personal Care, Oil and Gas and Pharma sectors, in the specialty chemical space.
Both projects are expected to be commissioned in a phased manner by Q3 FY25. Funding will be sourced through a blend of the Company's internal accruals and external borrowings
