Himadri Speciality Chemical Ltd (HSCL) on Tuesday reported a 40 per cent year-on-year jump in net profit to Rs 123 crore in the first quarter of the current fiscal and said it will retain the traction for the year backed by volume and margin growth.
Himadri Speciality's CMD and CEO attributed the jump to robust growth in sales and profitability driven by our value-added speciality products in both coal tar, speciality oils and speciality carbon black
Himadri Speciality Chemical Ltd (HSCL) on Tuesday reported a 40 per cent year-on-year jump in net profit to Rs 123 crore in the first quarter of the current fiscal and said it will retain the traction for the year backed by volume and margin growth.
EBITDA increased by 43 per cent year-on-year to approximately Rs 188 crores in Q1FY'25, up from Rs 131 crore in the corresponding quarter of the previous fiscal year. Sales also jumped to Rs 1200 crore during the quarter expanding by 26 per cent.
"We have posted robust growth in sales and profitability driven by our value-added speciality products in both coal tar, speciality oils and speciality carbon black. The traction will continue due to various factors," Anurag Choudhary, CMD & CEO of Himadri Speciality, told PTI.
Explaining the factors, he said Himadri being the leader with 65 per cent market share in coal tar pitch and remains one of the cheapest producers in the segment, there is no Chinese threat unlike other chemical companies and remains a competitive producer in the segment.
"Rather, we will begin exporting liquid coal tar pitch for the first time to the Middle East at a more competitive price than Chinese," Choudhary boasted.
Coal tar is a widely used material in the aluminium industry. Himadri Speciality Chemical also achieved a significant milestone by becoming debt-free with a positive net cash balance of Rs 56 crore during the quarter under review.
"A significant milestone is our achievement of becoming debt-free, our long-term focus on speciality and high-value-added products has consistently driven profitability, complemented by initiatives in operational efficiency, yield improvements, and competitive value propositions for our customers," Choudhary said.
Himadri has lined up brownfield expansion of specialty carbon black from 60,000 to 1.3 lakh tonne in West Bengal's Hooghly district plant at Rs 220 crore.
"The company is already embarked upon the next wave of growth plan with new sectors like tyres, LPF Cathode active materials, a key feedstock for Lithium Ion batteries," Choudhary said.