Rossari Biotech Q2 PAT rises 17% to Rs 21 cr

Rossari Biotech rose 0.7% to Rs 811.9 after the company posted a 16.7% rise in consolidated net profit to Rs 20.70 crore in Q2 September 2020 from Rs 17.74 crore in Q2 September 2019.

Net sales for Q2 September 2020 stood at Rs 171.67, rising 14.2% from Rs 150.3 crore in Q2 September 2019. The result was announced on Saturday, 24 October 2020.

Profit before tax (PBT) stood at Rs 27.79 crore in Q2 September 2020, 17.4% higher than Rs 23.68 crore registered in Q2 September 2019. Total tax expense rose by 18.6% to Rs 7.05 crore in Q2 September 2020 over Q2 September 2019.

The specialty chemical manufacturer EBITDA rose 6.36% to Rs 30.1 crore in Q2 September 2020 from Rs 28.3 crore in Q2 September 2019. EBITDA margin declined to 17.5% in Q2 September 2020 from 18.8% in Q2 September 2019.

Commenting on the performance for the quarter, in a joint statement, Edward Menezes, promoter & executive chairman and Sunil Chari, promoter & MD said, Our HPPC business continues to record healthy growth as we were one of the early movers to tap upon the growing national demand for hygiene products and anti-viral portfolio sales. Our fungible & agile manufacturing establishments enabled us to swiftly and efficiently address large volume requirements for these products, which in turn, recorded strong improvement in HPPC sales. In addition, as the country moved to the unlock-down phase, we were able to again even out capacities to cater to the encouraging pick-up in demand witnessed in the TSC and AHN businesses. Consequently, we reported a healthy overall Y-o-Y growth of 14.2% in revenues during the quarter. Our focus towards seeding new business products with distinguished offerings and unique value remains solid.

During the quarter, we have further broadened our product offerings within the high-growth categories of hygiene, laundry and fabric-care segments. On the operational front, our manufacturing facilities are also now operating at near-normal utilization levels. In addition, the ramp-up at our Greenfield Dahej plant is continuing at a healthy pace and we remain on track to fully operationalise the plant by March 2021. On the whole, the Company has delivered a steady and encouraging performance during the first half of the fiscal. As we look ahead, the upcoming festive season and the stabilization in domestic markets should lead to better demand and enhanced consumer sentiments in the medium to longer term. On the whole, we are confident of the future growth potential and opportunities across the domestic market over the medium to longer term.

Rossari Biotech is a speciality-chemicals manufacturer providing intelligent and sustainable solutions for customers across industries.

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