Shares of this small-cap Chemical stock surged nearly 6 percent on Tuesday, following the company’s significant 50 percent QoQ rise in net profit and robust revenue growth in its latest quarterly results.
Share Price Movement
During Tuesday’s trading session, Sumitomo Chemical India Ltd’s share price increased by 5.9 percent, reaching an intra-day high of Rs.544.70 per share, up from the previous close of Rs.514.40 apiece. The shares have retreated since then and are currently trading at Rs.537.45 per share.
What Happened
The bullish movement in Sumitomo Chemical India’s stock price reflects its growth in revenue and net profit for the recent quarter. In its filing for Q2 FY25 (ending September 2024), the company reported an 8 percent YoY increase in revenue, reaching Rs.971 crore, up from Rs.903 crore in Q2 FY24, and a 17 percent QoQ increase from Rs.832 crore in Q1 FY25.
Net profit rose significantly by 33 percent YoY to Rs.191 crore, compared to Rs.144 crore in Q2 FY24, and by 50 percent from Rs.128 crore in Q1 FY25.
The company’s EBITDA margin improved from 20.8 percent to 24.8 percent YoY, while its net profit margin rose from 38.2 percent to 42.6 percent.
Return ratios show a ROCE of 20.8 percent and an ROE of 15.3 percent, supported by a robust current ratio of 3.00 and a low debt-to-equity ratio of 0.01.
Product Break Up
In H1 FY25, Sumitomo Chemical India Ltd’s product category distribution was as follows: insecticides accounted for 39 percent, herbicides 26 percent, plant growth regulators (PGR) 11 percent, metal phosphides 7 percent, fungicides 9 percent, and the combined segment of Animal Nutrition & Environmental Health Division (AND & EHD) represented 8 percent.
Geographical Break-Up
In H1 FY25, the geographic revenue distribution for Sumitomo Chemical India Ltd was as follows: domestic sales comprised 83 percent, followed by Australia at 7 percent, Japan at 3 percent, Africa at 3 percent, Europe at 2 percent, North America at 2 percent, Asia (excluding India) at 2 percent, and South America at 0 percent.
About the Company
Sumitomo Chemical India Ltd. (SCIL) is a prominent player in the agrochemical industry, specializing in crop protection, animal nutrition, and environmental health products. It is a subsidiary of Sumitomo Chemical Company Limited.
Written by – Siddesh S Raskar
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