Back4 chemical stocks surge up to 20% today after Q1 results
Indian equity benchmarks ended almost steady. The market started off positively but became turbulent during the trading day.
PremiumIndian equity benchmarks ended almost steady. The market started off positively but became turbulent during the trading day. The BSE index ended Wednesday 35.78 points, or 0.06 per cent, down at 58,817.29, while the NSE Nifty index increased by 9.65 points, or 0.5%, to 17,534.75. The majority of the chemical industry stocks closed the day on a green note despite the erratic stock market. The four stocks that gained by up to 20% in trade today were Chemcon Speciality Chemicals Ltd, Tata Chemicals Limited, Fairchem Organics Ltd, and Fine Organic Industries Ltd. These gains were supported by solid Q1FY23 results.
Chemcon Speciality Chemicals Ltd
In Q1FY23 the company's revenue from operations reached ₹89.4 Cr compared to ₹57.2 Cr in Q1FY22 a YoY rise of 56.3%. With a YoY increase of 87.8%, the company's EBITDA in Q1FY23 increased from ₹17.9 Cr to ₹33.6 Cr. Additionally, the EBITDA Margin increased from 31.2% in Q1FY22 to 37.5% in Q1FY23. The company's Earnings before interest and taxes (EBIT) reached ₹34.3 Cr in Q1FY23 compared to ₹18.3 Cr in the same quarter of the last year. The company's Profit before Tax (PBT) reached ₹34.1 Cr in Q1FY23 compared to ₹18.1 Cr in Q1FY22 and PAT rose by 89.9% from 13.4 Cr in Q1FY22 to ₹25.5 Cr in Q1FY23.
Commenting on the results, Mr. Kamal Aggarwal, Chairman & MD said, “We are delighted to report the highest ever quarterly performance led by healthy demand across the product portfolio. For Q1FY23, we have registered a revenue of ₹89.4 crores, a growth of 56% on YoY basis. Both HMDS and CMIC are gaining traction and are currently performing satisfactorily. CMIC's newly expanded capacity is also contributing to the growth, and production is expected to ramp up in the coming quarters. On the other hand, the Bromide chemicals have recorded a strong performance on the back of a high-order book. We anticipate consistent performance from these chemicals in the coming months."
“Commercial production of P9 unit is expected to commercialize by end of Q2FY23 whereas we are targeting P10 unit to commence by end of this financial year. Post expansion program, we will be well prepared to arrest the upcoming opportunities not only for existing products but also for new products. Some of the new products which we are targeting are primarily imported substitutions," added Mr. Kamal.
“Our technological expertise has propelled us to the forefront throughout the years, and we are well positioned to capitalize on prospects in pharmaceutical chemicals. We are persistently working to restore business growth and extend our product offering to our clients. India is still a net importer of numerous pharmaceutical chemicals, so there is vast headroom for a manufacturer like us to establish ourselves as a long-term trusted and sustainable partner," Mr. Kamal Aggarwal further added.
For the fiscal year 2022–2023, the Board of Directors has approved the payment of an interim dividend of Rs. 4 per share with a face value of Rs. 10 (@ 40% of share face value). The shares of Chemcon Speciality Chemicals Ltd closed today at ₹397.55 apiece, up by 20.00% from the previous close of ₹331.30. On a YTD basis, the stock has gained 5.70% so far in 2022.
Tata Chemicals Limited
The company recorded consolidated income from operations for the quarter at ₹3,995 Cr, up 34% from ₹2,978 Cr for the same quarter last year. The company recorded revenue from operations of ₹1,225 Cr, up 48% from ₹828 Cr in Q1FY 22, on a standalone basis. Comparing this quarter's consolidated PAT from continuing operations to the same quarter of the previous year, the improvement was ₹342 Cr to ₹641 Cr. On a standalone basis, the income from operations rose by 48% to ₹1,225 Cr in Q1FY23 as compared to ₹828 Cr in Q1FY22. PAT was ₹381 crores on a standalone basis as opposed to ₹228 crores for the same quarter of the previous year.
Commenting on the results, Mr. R. Mukundan, Managing Director & CEO, Tata Chemicals Ltd., said, The global demand environment continues to be positive across our products and their applications. While this positive momentum is expected to continue in the near to medium term, the input side environment especially energy remain at elevated levels coupled with logistic challenges that continue to be seen in the market. The team has shown agility and has responded well by staying close to customers and supply chain partners. We continue our long term focus on excellence by leveraging digitalization and sustainability. In addition to operational excellence, we continue to focus on executing growth capex.
The shares of Tata Chemicals Limited closed today at ₹1,072.25 apiece, up by 12.04% from the previous close of ₹957 per share. On a YTD basis, the stock has gained 17.29% so far in 2022.
Fairchem Organics Ltd
In Q1FY23 the company reported a total income of Rs. 225.40 crores as compared to Rs. 139.53 crores during the same quarter of the last year. The company reported a profit before tax (PBT) of ₹36.04 Cr compared to ₹29.93 Cr in the same quarter of last year. The company's total expenses reached ₹189.35 Cr in Q1FY23 which was ₹109.60 Cr in Q1FY22. The company reported a profit after tax (PAT) of ₹27.02 Cr in Q1FY23 compared to ₹22.31 Cr in Q1FY22.
The shares of Fairchem Organics Ltd closed today at ₹1,815.00 apiece, up by 13.04% from the previous close of ₹1605.65 per share. On a YTD basis, the stock has gained 7.11% so far in 2022.
Fine Organic Industries Ltd
The company's revenue reached ₹753 Cr in Q1FY23 compared to ₹360 Cr in Q1FY22 a YoY rise of 109%. The company reported an EBITDA of ₹206 Cr in Q1FY23 compared to ₹50 Cr in Q1FY22 a YoY rise of 313%. The company reported a PAT of ₹157 Cr in Q1FY23 compared to ₹35 Cr in Q1FY22 a YoY rise of 351%. The company reported a gross profit of ₹310.5 Cr in Q1FY23 compared to ₹111.9 Cr in the same quarter of last year, a YoY rise of 177%. The company reported an EBIT of ₹211 Cr in Q1FY23 compared to ₹46.3 Cr in Q1FY22 a YoY rise of 356%. The company reported an EBITDA Margin of 27.3% in Q1FY23 which was 13.8% in the same quarter of the last year and its EBIT Margin reached 28.0% from 12.9% in Q1FY22.
The shares of Fine Organic Industries Ltd closed today at ₹6,664.95 apiece, up by 14.38% from the previous close. On a YTD basis, the stock has gained 75.53% so far in 2022.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!
