Kemistar Corporation has announced a significant milestone for its wholly owned subsidiary, K P International Private Limited. The company has received the Consent to Operate (CTO) from the Gujarat Pollution Control Board (GPCB) for its manufacturing plant in Dahej, marking a major step forward in its e-waste management capabilities.

Plant Capacity and Operations

The newly approved facility has been granted permission to process 27,000 MT per annum of various materials, including:

• E-waste
• Li-ion batteries
• Solar panels
• Metal recovery

This capacity is part of a larger consented quantity of 42,000 MT per annum, indicating room for future expansion. The plant has already commenced operations, with initial trials successfully completed.

Validity and Future Plans

The Consent to Operate issued by GPCB is valid until March 15, 2030, providing Kemistar's subsidiary with a long-term operational framework. The company has expressed its intention to establish the remaining manufacturing capacity in the near future, potentially bringing the total processing capability to the full 42,000 MT per annum.

Strategic Implications

This new vertical is expected to drive robust revenue growth for Kemistar Corporation. The company anticipates that the e-waste processing plant will open doors to partnerships with:

• Large-scale companies
• Educational and research institutes
• Various government departments

These collaborations could potentially position Kemistar as a key player in the growing field of electronic waste management and recycling.

Environmental and Business Impact

The establishment of this e-waste processing facility aligns with the increasing global focus on sustainable practices and circular economy principles. By providing a solution for the recycling and recovery of materials from electronic waste, solar panels, and batteries, Kemistar is addressing a critical environmental need while also tapping into a potentially lucrative market.

Management's Perspective

In the official intimation to the BSE, the company stated, "This milestone will reinforce the company's position as a frontrunner in building scalable, sustainable and self-reliant recycling solutions." This statement underscores Kemistar's commitment to sustainability and its ambition to lead in the recycling sector.

As the world grapples with the growing challenge of e-waste management, Kemistar's new facility represents a significant step towards creating a more sustainable approach to electronic waste and resource recovery. The company's strategic move into this sector could potentially yield substantial benefits, both environmentally and economically, in the years to come.

Kemistar Corporation Limited, a diversified company, has released its financial results for the first quarter, revealing a significant decline in revenue but maintaining profitability across its operations.

Consolidated Performance

Kemistar Corporation reported consolidated revenue of Rs. 285.35 crore for Q1, marking a substantial 38.5% year-over-year decline from Rs. 461.51 crore in the same quarter last year. The company also experienced a sharp 59.4% quarter-over-quarter drop from Rs. 702.72 crore in the previous quarter.

Despite the revenue contraction, Kemistar managed to improve its gross profit margin to 35.9%, up from 20.9% in the previous quarter. This improvement in margin helped the company maintain profitability, with net profit standing at Rs. 11.16 crore, translating to a 3.9% profit margin.

Standalone Performance

On a standalone basis, Kemistar's performance mirrored the consolidated results, albeit on a smaller scale. The company's standalone revenue fell to Rs. 29.34 crore, representing a 9.3% year-over-year decline and a substantial 75.1% quarter-over-quarter drop.

Notably, the standalone business returned to profitability in Q1, reporting a net profit of Rs. 0.75 crore. This marks a turnaround from the Rs. 4.60 crore loss recorded in the previous quarter.

Key Financial Metrics

Operational Highlights

The company's major expenses for the quarter included purchases of stock-in-trade, which amounted to Rs. 182.35 crore for consolidated operations. This figure represents a significant portion of the company's revenue, indicating potential challenges in managing inventory and cost of goods sold.

Kemistar's paid-up equity share capital remained unchanged at Rs. 1075.94 crore, reflecting stability in the company's capital structure.

Management Commentary

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting. While specific management comments were not provided in the available data, the improvement in gross profit margin suggests that the company may have implemented cost-cutting measures or focused on higher-margin products to mitigate the impact of revenue decline.

Conclusion

Kemistar Corporation Limited faces challenges in the form of declining revenues across both its consolidated and standalone operations. However, the company's ability to improve its gross profit margin and maintain profitability in a difficult quarter demonstrates resilience in its business model. Investors and stakeholders will likely be watching closely to see if the company can reverse the revenue decline in the coming quarters while sustaining its improved profit margins.