This leading Battery manufacturing firm which provides Lithium-ion cells to the electric vehicle industry reported robust Q1FY25 results demonstrating a 7 percent rise in net profits and also announced plans for a capital expenditure of Rs 220 crores to expand its specialty carbon black capacity.
Share price movement: With a market capitalization of Rs 20,786.86 crores, the shares of Himadri Speciality Chemical Limited tumbled 0.8 percent to an intraday high of Rs 436 apiece. The shares of this firm generated a multi-bagger return of 205.25 percent over the past year and 15 percent over the past 6 months.
What happened: According to the Himadri Speciality Chemical Limited stock exchange filings, the company has announced its latest Q1FY25 results and capital expenditure plans through the financial markets.
Financials: Reviewing the consolidated financials of Himadri Speciality Chemical Limited on a QoQ basis, the net revenue from operations increased by 2 percent from Rs 1,176.95 crores in Q4FY24 to Rs 1,200.41 crores in Q1FY25. The net profits of the firm increased from Rs 115.18 crores to Rs 122.78 crores for the same period, demonstrating a 7 percent rise.
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Analyzing the consolidated financials of Himadri Speciality Chemical Limited on a YoY basis, the net revenue from operations increased by 26.24 percent from Rs 950.91 crores in Q1FY24 to Rs 1,200.41 crores in Q1FY25. Also, the net profits increased by 42.60 percent from Rs 86.1 crores to Rs 122.78 crores in the same time frame.
The EBITDA of Himadri Limited increased by 43 percent to Rs 188 crores in Q1FY25 which was fueled by a change in product mix and better operating efficiency.
The sales volume as of Q1FY25 stood at 1,39,175 Metric Tonnes (MT) highlighting a 38 percent jump from a sales volume of 1,01,030 MT in Q1FY24. This sales growth was fueled by the addition of a new specialty product line.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 13.48 percent and a return on capital employed (ROCE) of 19.64 percent. It has also reported a debt-to-equity ratio of 0.20 times for the same period.
Capex and expansion: With an estimated capital expenditure of Rs 220 crores, Himadri Limited has plans to increase the specialty carbon black capacity to 130,000 Metric tonnes per Annum (MTPA) from an existing capacity of 60,000 MTPA making it the world’s largest specialty carbon black capacity at a single site which is to be operational by Q3FY26.
Client base: Himadri Speciality Chemical Limited caters to various marquee tyre companies such as CEAT, MRF tyres, Continental, Goodyear, Bridgestone, and Good Year.
Product Portfolio: The company’s product segments include coal tar pitch, carbon black, naphthalene and refined naphthalene, sulfonated naphthalene formaldehyde (SNF), and specialty oils.
Shareholding Pattern: As of June 24, the firm’s shareholding pattern stood at 50.2 percent for promoters, 42.36 percent for the public, 5.16 percent for foreign institutional investors, and 2.28 percent for domestic institutional investors.
About the Company: Incorporated in 1987, Himadri Speciality Chemical is primarily engaged in the manufacturing of carbon materials and chemicals. The company’s product segments include coal tar pitch, carbon black, naphthalene, and refined naphthalene, sulfonated naphthalene formaldehyde (SNF), and specialty oils.
Written By Zahal
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