Bharat Rasayan share zooms 17% post Q4 results; profits jump two fold

Shares of Bharat Rasayan surged 16.8 per cent at Rs 10,736 per share on the BSE in Friday’s intraday trade. This came after the company delivered a solid financial performance in its January-March quarter of fiscal year 2023-24 (Q4FY24). 

The company’s net profit jumped by 122 per cent year on year (Y-o-Y) to Rs 67.1 crore in Q4FY24 as against Rs 30.2 crore in the corresponding quarter of the previous year.

Its revenues from operations rose slightly by 1.2 per cent Y-o-Y to Rs 309.6 crore versus Rs 305.8 crore in the same quarter last year. 

The company’s total expenses for the quarter under review dropped by 2.7 Y-o-Y per cent to Rs 247 crore from Rs 254 crore in the year ago period. 

Bharat Rasayan reported an operating margin or earnings before interest, tax, depreciation and amortisation margin of 27.8 per cent from 15.5 per cent in the same quarter last year. Its net profit margin for the quarter came in at 21.9 per cent compared to 10 per cent in Q4FY23.

On a full year basis, the company’s profit, however, dropped 23.3 per cent to Rs 95.5 crore in FY24 from Rs 124.6 crore in FY23. Revenues also tumbled by 15.3 per cent to Rs 1,040 crore in FY24 versus Rs 1,234 crore in FY23. 

Ebitda margin in FY24 stood at 12.2 per cent versus 14.8 per cent in FY23, while the net profits slipped to 9.2 per cent as against 10.2 per cent a year earlier.

At 10:04 AM; the stock of the company was trading 12.57 per cent higher at Rs 10,345 per share on the BSE. In comparison, the S&P BSE Sensex was up by 0.41 per cent. Bharat Rasayan is presently trading at price to earnings multiple of 65.56 times.

Bharat Rasayan is a chemical manufacturing company, engaged in the production of fatty acid anhydrieds, grignard reagents, drug intermediates, esters and solvents. It manufactures cosmetic ingredients with primary focus in the personal care preservatives.