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What is the story about?
Shares of Acutaas Chemicals fell sharply on Friday, July 24, even as it reported a strong June quarter. All key parameters reported growth on a year-on-year basis, including its operating income and margins.
Net profit for the June quarter increased by 67.7% to ₹74.3 crore, compared to ₹44.3 crore during the same quarter last year.
Revenue for the period also increased by 59.1% to ₹329.7 crore compared to ₹207.2 crore on a year-on-year.
Earnings before interest taxes depreciation and amortization more than doubled to ₹113.1 crore from ₹50.9 crore last fiscal. EBITDA margin also expanded sharply to 34.3% from 24.6% during the year-ago quarter. The margin expansion was led by better production efficiencies and operational efficiencies.
Gross margins for the quarter improved by 466 basis points on a year-on-year basis to 57.9%.
Acutaas Chemicals has also received the Responsible Care certification from the Indian Chemical Council.
With Acutaas' various business segments, the core Advance Intermediates business saw 77% revenue growth from the same quarter last year to ₹2,927 crore. Within the Pharma Intermediates business, the CDMO division continued its strong growth momentum, while the core advanced intermediate business also saw robust growth.
On the flip side, the Specialty Chemicals business, a relatively smaller part of the business, saw revenue drop 10.6% from last year to ₹370 crore. Strong growth in the BFC division here was offset by a muted performance in the commodity chemicals.
The company's Executive Chairman and Managing Director Naresh Patel reiterated that the company's revenue growth for the full year will be at 25% and margins will also be stable.
Shares of Acutaas Chemicals are looking to recover from the lows of the day, currently trading 4.9% lower at ₹3,290. The stock is up nearly 5x from its issue price of ₹610 per share. The stock had listed on the bourses back in September 2021.
Also Read: Explained - The two main triggers behind Ramco Systems' 10% lower circuit
Net profit for the June quarter increased by 67.7% to ₹74.3 crore, compared to ₹44.3 crore during the same quarter last year.
Revenue for the period also increased by 59.1% to ₹329.7 crore compared to ₹207.2 crore on a year-on-year.
Earnings before interest taxes depreciation and amortization more than doubled to ₹113.1 crore from ₹50.9 crore last fiscal. EBITDA margin also expanded sharply to 34.3% from 24.6% during the year-ago quarter. The margin expansion was led by better production efficiencies and operational efficiencies.
Gross margins for the quarter improved by 466 basis points on a year-on-year basis to 57.9%.
Acutaas Chemicals has also received the Responsible Care certification from the Indian Chemical Council.
With Acutaas' various business segments, the core Advance Intermediates business saw 77% revenue growth from the same quarter last year to ₹2,927 crore. Within the Pharma Intermediates business, the CDMO division continued its strong growth momentum, while the core advanced intermediate business also saw robust growth.
On the flip side, the Specialty Chemicals business, a relatively smaller part of the business, saw revenue drop 10.6% from last year to ₹370 crore. Strong growth in the BFC division here was offset by a muted performance in the commodity chemicals.
The company's Executive Chairman and Managing Director Naresh Patel reiterated that the company's revenue growth for the full year will be at 25% and margins will also be stable.
Shares of Acutaas Chemicals are looking to recover from the lows of the day, currently trading 4.9% lower at ₹3,290. The stock is up nearly 5x from its issue price of ₹610 per share. The stock had listed on the bourses back in September 2021.
Also Read: Explained - The two main triggers behind Ramco Systems' 10% lower circuit
