Laxmi Organic hits record high after robust Q1 outcome

Laxmi Organic Industries jumped 6.16% to Rs 289.35 after the company posted a 379% rise in consolidated net profit to Rs 102 crore on 82.4% jump in net sales to Rs 736 crore in Q1 FY22 over Q1 FY21.

Consolidated profit before tax stood at Rs 135.86 crore in Q1 FY22, sharply higher than Rs 27.47 crore in Q1 FY21. EBITDA stood at Rs 145.3 crore in Q1 FY22 compared with Rs 42 crore in Q1 FY21, registering a growth of 246% year on year and 128% quarter on quarter. EBITDA margins stood at 19.73% in Q1FY22 and expanded by 933 basis points year on year and 747 basis points quarter on quarter.

Commenting on the strong financial performance, Ravi Goenka, chairman & MD of the company said, "I am pleased to announce that Laxmi Organic Industries has delivered a robust financial performance in this quarter. The operating revenues came in at Rs 689.7 crore as against Rs 353.7 crore in Q1FY21 and Rs 467.4 crore in Q4FY21. The strong growth in revenues was fueled by 102% and 126% Y-o-Y growth in Acetyl Intermediates (AI) and Specialty Intermediates (SI), respectively. Similarly, the AI and SI grew by 31% and 53% respectively on Q-o-Q basis. The strong performance in AI business was attributable to higher realizations, whereas the SI business was driven by both volume and pricing. Our SI business recorded the highest volumes this quarter and delivered 20% export revenue. The demand from end-user industries also remained strong. This resulted in corresponding growth of 268% and 431% Y-o-Y basis in EBITDA and PAT, respectively. Similarly, the EBIDTA and PAT grew by 146% and 216% respectively on Q-o-Q basis."

He further added, "The floods in Maharashtra in July impaired our operations in Mahad, and our SI unit has been severely impacted. The SI unit has suffered a complete shut down in operations with flooding, lack of electricity, and other structural damages brought about by the flood. We are insured adequately, including loss of profit. Currently we are in the midst of assessing our damages and the insurance survey is underway, suffice to say that this will have a significant impact on our performance for this quarter. As a company, we are strong and resilient, and we have proved that time and again. So, we are certain that we will be able to emerge stronger from this challenge as well."

In its outlook, the company said that on-going capital expenditures at the speciality manufacturing site will be delayed due to the flood. However, the fluorochemicals site has been relatively unaffected and the ongoing capex plans at Lote Parshuram site remain on track. Q1 has given a good start to the company; however, the market has started to correct in the second quarter. Supported by the robust first-quarter we remain focused to achieve our FY22 annual business plans despite the flood-related disruptions.

Shares of Laxmi Organic hit a record high of Rs 299.50 in intraday today. The stock is up 102% from its 52-week low of Rs 143 posted on 25 March 2021. On the BSE, 5.01 lakh shares were traded in the counter so far compared with average daily volumes of 1.81 lakh shares in the past two weeks.

Laxmi Organic Industries is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals.

Powered by Capital Market - Live News