Chemicals maker Anupam Rasayan Q1 net profit rises 25% to Rs 52.25 crore

Chemicals maker Anupam Rasayan on Tuesday posted a 24.52 per cent rise in its consolidated net profit at Rs 52.25 crore in the June quarter on strong revenue.

Net profit stood at Rs 41.96 crore in the same quarter a year ago, a regulatory filing said.

Total income rose on a consolidated basis to Rs 398.76 crore during the April-June quarter of the 2023-24 fiscal from Rs 334.3 crore in the year-ago period.

Expenses remained higher at Rs 321.46 crore as against Rs 273.64 crore in the said period.

Anand Desai, Managing Director of Anupam Rasayan, said, "I am delighted at the consistent growth momentum of the company against a challenging industry backdrop."

While the falling prices of commodity agrochemicals are putting pressure on margins for the industry, the company's customised products and robust business model helped deliver strong EBITDA margins of 29 per cent in Q1 of this fiscal, he said.

During Q1, Anupam Rasayan signed an MoU with 3xper Innoventure Ltd for the supply of targeted and identified new-age pharma molecules using continuous process. The company has also signed Letters of Intent (LOIs) worth Rs 4,066 crore with the Japanese and American MNCs for niche life sciences and specialty chemical molecules.

"These LOIs reinforce the growing confidence of global MNCs in our technical capabilities and think of us as the trusted partner of choice for high-end customised molecules. These LOIs improves our revenue visibility in the coming years," Desai said.

The company's order book remains strong despite a challenging external environment, giving the confidence to deliver robust growth in FY24 while maintaining margins, he added.

The company has six manufacturing facilities in Gujarat with four facilities located at Sachin in Surat, while one of them is located at Jhagadia, Bharuch with an aggregate installed capacity of about 27,200 tonne as on December 31, 2022.