Rossari Biotech shocks market with stellar Q1 FY25 performance – Revenues soar by 19.3%

Rossari Biotech Limited, a prominent specialty-chemicals manufacturer, has unveiled its financial results for the quarter ending June 30, 2024, showcasing significant year-on-year growth across key metrics.

This robust performance underscores the company’s strategic expansion and innovation in the specialty chemicals sector.

Rossari Biotech’s Q1 FY25 results reveal a strong growth trajectory, driven by healthy volume increases in the Home, Personal Care and Performance Chemicals (HPPC) and Textile Specialty Chemicals (TSC) divisions. Revenue from operations surged 19.3% to Rs. 489.7 crore from Rs. 410.6 crore in Q1 FY24. EBITDA rose by 12.5% to Rs. 64.9 crore, compared to Rs. 57.7 crore in the previous year. The EBITDA margin stood at 13.3%, a slight dip from 14.1%. Profit After Tax (PAT) increased by 19.5% to Rs. 34.9 crore from Rs. 29.2 crore. Earnings Per Share (EPS) (Diluted) was Rs. 6.3, up from Rs. 5.3.

On a standalone basis, revenue from operations reached Rs. 300.7 crore, marking a 16.4% increase from Rs. 258.3 crore. EBITDA grew by 13.4% to Rs. 39.8 crore from Rs. 35.1 crore. The EBITDA margin slightly decreased to 13.2% from 13.6%. PAT rose by 12.5% to Rs. 24.3 crore, up from Rs. 21.6 crore. EPS (Diluted) was Rs. 4.4, compared to Rs. 3.9 in the previous year.

Edward Menezes, Promoter & Executive Chairman, and Sunil Chari, Promoter & Managing Director, expressed their satisfaction with the quarterly performance, attributing the growth to significant volume increases in HPPC and TSC sectors. They emphasized the stability of the Animal Health and Nutrition (AHN) business and highlighted the company’s successful expansion into international markets.

Rossari Biotech continues to prioritize R&D as a cornerstone of its growth strategy. The company’s robust R&D capabilities are pivotal in developing innovative, sustainable solutions that meet evolving market needs. Rossari’s commitment to expanding its customer base in new and existing geographies has significantly contributed to its international performance.

The company is progressing with its expansion projects at the Dahej facility. This includes adding 20,000 MTPA capacity for HPPC products and expanding Ethoxylation capacity by 30,000 MTPA to cater to growing demands in various sectors. Commissioning of these projects is expected to occur in phases within the current year.

Rossari Biotech’s continued investment in R&D and strategic expansion highlights its strong position in the specialty chemicals market. By focusing on innovation and sustainability, the company is well-positioned to capitalize on emerging opportunities and drive future growth. The expansion of manufacturing capabilities at Dahej is a strategic move that will likely enhance Rossari’s market presence and operational efficiency.