Fineotex Chemical reports strong Q1 FY2025 financials and strategic developments

Fineotex Chemical Limited, a leading name in India’s specialty chemicals sector, has announced robust financial results for the first quarter of fiscal year 2025. The company’s consolidated revenue for Q1 FY2025 reached Rs. 1,419 million, marking a 7.3% year-on-year increase. This growth is attributed to a higher share of business from core clients across key divisions.

The company’s EBITDA for the quarter stood at Rs. 353 million, reflecting an 11.8% year-on-year growth and a margin of 24.8%. Meanwhile, Profit After Tax (PAT) was Rs. 292 million, an increase of 11.7% from the previous year, with a margin of 20.6%. These figures highlight Fineotex Chemical’s continued strong performance despite broader market challenges.

In addition to the financial performance, Fineotex Chemical has undertaken several key strategic initiatives. The company successfully raised Rs. 3,425.5 million through a preferential allotment of shares. This capital injection is intended to support both organic and inorganic growth strategies, including expansion and operational enhancements.

The company has also been certified as a Great Place to Work for the third consecutive year, underscoring its commitment to maintaining a positive and productive workplace culture. This certification reflects the company’s ongoing efforts to foster a supportive environment for its employees.

Another significant development is the appointment of Dr. Amit Prabhakar Pratap as a non-executive, independent director, subject to approval at the upcoming Annual General Meeting (AGM). Dr. Pratap, currently the Head of the Department at the Institute of Chemical Technology, Mumbai, brings extensive expertise and is expected to contribute significantly to the company’s governance and strategic direction.

Financial Performance Overview

• Revenue from Operations: Rs. 1,419 million for Q1 FY2025, up 7.3% year-on-year from Rs. 1,322 million in Q1 FY2024.
• Gross Profit: Rs. 548 million for Q1 FY2025, reflecting a 12.3% increase from Rs. 488 million in Q1 FY2024.
• EBITDA: Rs. 353 million for Q1 FY2025, up 11.8% from Rs. 315 million in Q1 FY2024.
• Profit Before Tax (PBT): Rs. 376 million for Q1 FY2025, marking an 11.8% increase from Rs. 337 million in Q1 FY2024.
• Profit After Tax (PAT): Rs. 292 million for Q1 FY2025, an increase of 11.7% from Rs. 261 million in Q1 FY2024.

Company Background

Founded in 1979, Fineotex Chemical Limited (BSE: 533333 | NSE: FCL) is a prominent producer of specialty chemicals with a significant presence in both domestic and international markets. The company manufactures a wide range of products for the textile industry, including chemicals for pre-treatment, dyeing, printing, and finishing processes. It has also expanded into home care, hygiene, and drilling specialty chemicals.

Fineotex Chemical operates manufacturing facilities in Mumbai and Ambernath, India, and Selangor, Malaysia, with a combined capacity of 104,000 MTPA. The Ambernath facility, recently upgraded to 61,000 MTPA, caters to the growing demand for textile specialties as well as home care and hygiene products.

The company’s Malaysian subsidiary, Biotex Malaysia, spearheads research and development efforts, focusing on high-end textile finishing chemicals. Biotex Malaysia holds critical industry certifications, including Bluesign, Global Organic Textile Standard, REACH, Bhive, ISO 9001:2015, ZDHC, and OEKO-Tex, which position it as a preferred partner for global textile manufacturers.

The strong financial results and strategic developments position Fineotex Chemical for continued growth. Industry experts suggest that the successful capital raise and new appointments are indicative of the company’s commitment to scaling operations and enhancing governance. This strategic focus is expected to bolster Fineotex Chemical’s competitive edge in the specialty chemicals sector.