This Chemical stock which is in the business of manufacturing of Caustic Soda, Chloromethanes, Caustic Potash, Chlorine, Hydrogen, and Hydrogen Peroxide surged by 9 percent after announcing a net profit jump of 111 percent year on year.
Price Movement
In Monday’s trading session, Epigral Ltd‘s share price touched a day’s high of Rs. 1,846.20, which was up by 9.49 percent. The share price reiterated from the day’s high and was trading at Rs. 1,782.30, which is 5.71 percent higher than the previous closing price of Rs. 1,686.05. In the past year, the stock has delivered around 75 percent and has outperformed the Nifty Index.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 645.24 crore which increased by 36.84 percent year on year, from Rs. 471.52 crore in Q3FY24 and a 3.06 percent increase from Rs. 626.06 crore in Q2FY25. Their net profit increased by 111.14 percent year on year, from Rs. 49.08 crores in Q3FY24 to Rs. 103.63 crores in Q3FY25. Quarterly, the profits were up by 27.46 percent from Rs. 81.30 crore.
Revenue Segments & Capex Plans
The company has recognized its revenue from operations under Chloro Alkali and its Derivatives as its sole segment as of December 2024. Recently, the company has announced a capex plan of approx Rs. 780 crore for doubling the capacity of CPVC and Epichlorohydrin and is expected to commission in the H1FY27. For FY25, the estimated capex spending is around Rs. 98 crores. Epigral plans to increase its Derivatives and Specialty segment to approx 70 percent from the current 45 percent.
Dividend Announcements
Epigral has announced an Interim Dividend of Rs. 2.5 per share which is 25 percent on the face value of Rs. 10 per equity share. The record date for the dividend is fixed on Friday, 7th February 2025.
Management Commentary
Commenting on the results, Maulik Patel, the Chairman and Managing Director of Epigral said “Epigral’s revenue grew by 37% in Nine months of FY2025 on account 15% growth in sales volume from Derivatives business and high-value products. The diversification strategy of our company has played a key role in witnessing consistent and stable growth in this subdued demand scenario. Revenue contribution from Derivatives business stood at 54% for 9MFY25 vs 44% in 9MFY24”
“These projects will further contribute in FY2026 along with a contribution from Chlorotoluenes Value Chain, it is expected to get commissioned in the current quarter. Further, we are expanding and doubling our CPVC Resin and Epichlorohydrin capacity and we expect volume contribution from these projects from FY2027 onwards.”
Key Clients
The company’s clientele includes Supreme Industries, Gujarat Fluorochemicals, Atul, Vedanta, Astral Pipes, Divis Laboratories, Grasim, Ipca Laboratories, IT,C and others.
About the company
Epigral Ltd was founded in 2007 and it was formerly known as Meghmani Finechem Ltd. It is a leading integrated chemical manufacturer in India which specializes in chlor-alkali products and specialty chemicals.
Written by Santhosh S
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