Anupam Rasayan India reports decline in FY24 revenue amidst industry headwinds

Anupam Rasayan India Ltd. (BSE: 543275, NSE: ANURAS), a key player in India’s custom synthesis and specialty chemicals market, announced subdued financial results for the fourth quarter and the full fiscal year ending March 31, 2024. The company faced significant challenges throughout the year, leading to a noticeable decline in revenue and profits despite maintaining strong EBITDA margins.

Anupam Rasayan India FY24 Financial Performance Highlights

For the fiscal year 2024, Anupam Rasayan reported total revenue of ₹15,053 million, marking a 7% decrease from the previous year’s ₹16,105 million. The EBITDA for the year was ₹4,109 million, down 7% year-over-year, corresponding to an EBITDA margin of 27%. Profit After Tax (PAT) for FY24 also saw a significant reduction, down 23% to ₹1,674 million from ₹2,168 million in FY23.

Anupam Rasayan India Q4 FY24 Detailed Financial Review

The fourth quarter reflected similar trends, with total revenue decreasing by 18% year-over-year to ₹4,130 million from ₹5,042 million. The quarterly EBITDA stood at ₹1,047 million, a 26% decrease, translating into an EBITDA margin of 25%. Additionally, the Profit After Tax was ₹405 million, a stark 44% decrease from the previous year’s ₹726 million.

Management Insights and Strategic Initiatives

Mr. Anand Desai, Managing Director of Anupam Rasayan, addressed these results with cautious optimism. He acknowledged the significant headwinds faced by the chemical industry, particularly in the agrochemical sector. However, he highlighted the company’s strategic pivot towards expanding its pharmaceutical and polymer segments, which now contribute significantly to the revenue, showing promising growth.

“In FY24, our pharma contributions increased to over 9% of revenue, up from 4% last year. We are strategically expanding our customer base, adding 17 new molecules and partnering with four new multinational corporations, including two major Japanese firms,” stated Mr. Desai. He expressed confidence that FY25 would mark a return to growth, driven by the company’s continued focus on the polymer and pharmaceutical sectors.

Corporate Profile and Operational Footprint

Founded in 1984, Anupam Rasayan India Ltd. specializes in complex chemical syntheses catering to sectors including agrochemicals, personal care, and pharmaceuticals. The company operates six manufacturing facilities in Gujarat, India, with a combined production capacity of 27,000 MT as of the end of March 2024. These facilities are strategically located in Surat and Bharuch, enhancing their operational efficiencies and capacity to serve a broad range of domestic and international clients.

The fiscal year 2024 posed considerable challenges for Anupam Rasayan, reflecting broader economic pressures and specific industry downturns. However, the company’s strategic realignments and robust margin maintenance demonstrate its resilience and adaptability in a volatile market. Looking ahead, Anupam Rasayan’s focus on diversifying its product offerings and strengthening its presence in the pharmaceutical and polymer markets is expected to drive recovery and sustainable growth.