Himadri Speciality Chemical Q2 FY24: Net Profit Soars 35%, Revenue Grows 13%

Himadri Speciality Chemical Ltd. has delivered strong results for the second quarter of the fiscal year 2024, demonstrating significant year-on-year growth in both profit and revenue. For the quarter ending September 30, 2024, the company reported a net profit of ₹135.4 crore, a notable increase of 35% from ₹100.6 crore during the same period last year. This solid performance is indicative of the company’s successful strategies and market positioning in the speciality chemicals sector.

Revenue for Himadri also saw a healthy rise, reaching ₹1,137 crore, a 13.2% growth compared to ₹1,004.5 crore in the corresponding quarter of the previous fiscal year. This revenue boost highlights the company's growing operational scale and strong demand for its products. Himadri continues to capitalize on its core strengths while expanding into new areas, ensuring sustained growth in the highly competitive chemicals industry.

A key highlight of the quarter was the impressive performance at the operating level, with EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) surging by 32% to ₹208.2 crore, compared to ₹157.7 crore in the same quarter last year. The EBITDA margin also improved to 18.3%, up from 15.7% in the previous year. This marks a significant milestone for Himadri, as the company crossed the ₹200 crore mark in quarterly EBITDA for the first time.

Anurag Choudhary, CMD and CEO of Himadri Speciality Chemical Ltd., expressed satisfaction with the company’s performance, noting that the increase in sales volumes contributed to the strong results. He emphasized the growth in production, stating that sales volumes rose to 2,78,232 metric tons (MT) for the first half of FY24, compared to 2,11,242 MT in the corresponding period of FY23, reflecting a 32% growth.

One of the company's major achievements during the quarter was the successful completion of its first export shipment of liquid coal tar pitch in October 2024. This marks a crucial step for Himadri as it looks to tap into the vast global liquid coal tar pitch market. The company’s focus on expanding its international footprint, coupled with ongoing investments in new product lines and capacity expansion, positions it well for future growth.

Looking ahead, Himadri is making significant progress in its expansion initiatives. The company is developing its first commercial plant for LFP (Lithium Iron Phosphate) Cathode Active Material, which will have a production capacity of 40,000 metric tons per annum (MTPA). The plant is expected to be operational by the third quarter of FY27. This development is a strategic move as Himadri looks to strengthen its presence in the rapidly growing battery materials market.

In addition to its advancements in cathode materials, Himadri is also expanding its speciality carbon black production. The company is working on a new production line with a capacity of 70,000 MTPA, which is scheduled to be completed by the third quarter of FY26. These expansion projects are part of Himadri’s broader strategy to diversify its product offerings and increase its production capacity to meet growing global demand.

As of September 2024, Himadri reported a positive net cash balance of ₹255 crore, underscoring the company’s strong financial position and its ability to invest in growth opportunities. The company’s prudent financial management has allowed it to maintain a healthy balance sheet, ensuring it remains well-equipped to execute its ambitious growth plans.

On the stock market, shares of Himadri Speciality Chemical Ltd. ended at ₹657.85, up by ₹9.25 or 1.43%, reflecting investor confidence in the company’s growth prospects. The company’s strong financial performance and positive outlook continue to attract investor interest, further solidifying its position as a key player in the speciality chemicals sector.

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As Himadri moves forward, it remains focused on executing its expansion projects, maintaining operational efficiency, and tapping into new markets. With robust growth in revenue and profit, and continued advancements in its product lines, the company is well-positioned for sustained success in the coming quarters.