The shares of the leading specialty chemical gained up to 8 percent after the company’s net profit and revenue increased by 119 percent and 5 percent YoY, respectively in Q1FY25.
With a market capitalization of Rs 248.53 crore, the shares of Vipul Organics Ltd were trading in green at Rs 191.00 per share, increasing around 1 percent as compared to the previous closing price of Rs 189.25 apiece.
Reason for Rise:-
According to the company filing, Vipul Organics Ltd’s revenue plummeted by 4 percent on a quarter-on-quarter basis from Rs.39.99 crores in Q4FY24 to Rs. 38.06 crores in Q1FY25. Further, revenue magnified by 5 percent year on year from Rs 36.14 crores in Q1FY24 to Rs. 38.06 crores in Q1FY25.
Vipul Organics Ltd’s net profit zoomed by 5 percent on a quarter-on-quarter basis from Rs. 1.08 crores in Q4FY24 to Rs 1.14 in Q1FY25. Further, on a year-on-year basis also net profit magnified by 119 from Rs. 0.52 crores in Q1FY24 to Rs. 1.14 crores in Q1FY25.
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Revenue spilt & geographical presence:-
The company’s 66 percent of revenue comes from exports and 34 percent revenue comes from domestic. The Company has a network in 42 countries including China, Canada, Brazil, Germany, France, Egypt, Italy, Japan, Singapore, Switzerland, USA, UK, etc.
Manufacturing facilities:-
Vipul Organics has 3 manufacturing locations, near Mumbai, at Palghar, Tarapur, and Ambernath where it incorporates a backward forward integration process, where pigment Intermediates from which pigment powder is derived are also manufactured in-house. These plants have a total installed capacity of 3120 MTPA which is utilized at 70%.
Expansion:-
VOL intends to take up fresh term loans in FY23 to fund its anticipated capital expenditure for the construction of a new facility in Gujarat. It has launched a backward integration project in Saykha, Gujarat, to develop intermediates such as naphthalene and benzene derivatives, which are utilized as raw materials in its present goods. The overall cost of the project will be around Rs.39.08 crore, and the commercial production is projected to begin by FY25.
Company Snapshot:-
Vipul Organics Limited is an India-based firm that manufactures dyes, pigments, and intermediates. The Company offers a variety of goods, including pigment powders, pigment dispersions, reactive dyes, direct dyes, acid dyes, naphthols, fast color bases, fast color salts, vat dyes, vat paste, and basic dyes.
Written by:- Abhishek Singh
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