Fineotex Chemical Q3 PAT slides 15% YoY to Rs 28 cr

Fineotex Chemical's consolidated net profit slipped 15.46% to Rs 27.83 crore on 9.05% decrease in net sales to Rs 125.91 crore in Q3 FY25 over Q3 FY24.

In the third quarter of FY25, the profit before tax (PBT) fell by 16.25% year on year (YoY) to Rs 36.48 crore.

The company's consolidated operational EBITDA stood at Rs 34.29 crore in Q3 FY25. EBITDA Margin was at 27.2% in Q3 FY25.

Total expenses declined 5.40% YoY to Rs 94.42 crore in the quarter ended 31 December 2024. Cost of materials consumed was at Rs 79.30 crore (up 0.48% YoY), and employee benefits expense was at Rs 6.05 crore (up 11% YoY) during the period under review.

Sanjay Tibrewala, executive director, Fineotex Chemical, said, The companys performance for the nine months of FY25 remained stable despite a challenging environment with muted demand in the FMCG space, one of the key sectors that we cater to. Our guidance for revenue and profitability is intact. Revenue for the quarter was impacted by low volumes due to order postponements by a few customers. However, there has been no loss of customers, as demand fundamentals remain strong.

While the FMCG segment experienced lesser demand in the quarter, which we foresee to boost in the forthcoming quarter, the textiles vertical is doing well.

In fact, in the textiles business, we added 30 new customers in Q3FY25. As Indias long-term growth trajectory remains intact with a growth-oriented budget and liquidly boosted by the RBI, we are confident of our targets. Our diversification into new products, such as oil & gas and water treatment, is progressing well, with a strong order pipeline expanding across geographies.

Additionally, our upcoming plant remains on track and is expected to be operational by Q2FY26, further enhancing our manufacturing capabilities. With innovation at the core of our business, new solutions like AquaStrike Premium reinforce our commitment to sustainability and global market expansion.

During the quarter, we developed 15 newproducts,s increasing our product offerings. We remain committed to creating long-term value and will be issuing a dividend, reflecting our confidence in the companys financial health.

We see this slackness as an opportunity to grab the good targets for our inorganic growth opportunities, with our earmarked cash funds of more than Rs 300 crores. The outlook remainspositive;, our revenue and profitability guidance are intact.

Meanwhile, the board has declared an interim dividend of Rs 0.40 per equity share aggregating to Rs 4.58 crore. The record date for dividend is fixed as 18 February 2025 and will be paid on or before 14 March 2025.

Fineotex Chemical is a specialty chemicals manufacturer that produces a range of products for various industries, including the oil and gas industry.

Shares of Fineotex Chemical added 2.02% to currently trade at Rs 285.75 on the BSE.

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