Archean Chemical Industries Reports Q1 Results: Revenue Grows 31.9% YoY
Archean Chemical Industries Limited announced Q1 FY results with revenue from operations up 31.9% YoY to ₹278.63 crore. EBITDA increased 14.3% to ₹83.00 crore, while net profit rose 7.0% to ₹51.85 crore. EBITDA margin declined to 29.78% from 34.40%. The company made strategic investments in Clas-SiC Wafer Fab Limited (UK) and Offgrid Energy Labs Inc (USA), diversifying into semiconductor and energy storage sectors.

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Archean Chemical Industries Limited , a leading marine chemicals manufacturer, has announced its financial results for the first quarter of the fiscal year, ending June 30. The company reported robust growth in revenue and profitability compared to the same period last year.
Financial Highlights
Particulars (in ₹ crore) | Q1 Current | Q1 Previous | YoY Change |
---|---|---|---|
Revenue from Operations | 278.63 | 211.16 | 31.9% |
EBITDA | 83.00 | 72.60 | 14.3% |
EBITDA Margin | 29.78% | 34.40% | -460 bps |
Net Profit | 51.85 | 48.46 | 7.0% |
EPS (Basic) in ₹ | 4.20 | 3.93 | 6.9% |
Archean Chemical Industries reported a significant year-on-year growth of 31.9% in its standalone revenue from operations, reaching ₹278.63 crore in the current quarter compared to ₹211.16 crore in the same quarter of the previous year. This growth demonstrates the company's strong market position and increased demand for its marine chemical products.
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a healthy increase of 14.3%, rising from ₹72.60 crore to ₹83.00 crore. However, the EBITDA margin experienced a decline, dropping from 34.40% to 29.78%, indicating some pressure on operational efficiency.
Net profit for the quarter stood at ₹51.85 crore, marking a 7.0% increase from ₹48.46 crore in the corresponding quarter of the previous year. This growth in profitability, albeit at a lower rate than revenue growth, suggests that the company managed to maintain its bottom line despite potential cost pressures.
The company's earnings per share (EPS) improved to ₹4.20, up from ₹3.93, reflecting the positive impact of increased profitability on shareholder returns.
Operational Highlights
Archean Chemical Industries continues to focus on its core business of marine chemicals manufacturing. The company's production facility in Gujarat remains a key asset, contributing significantly to its operational capabilities.
Strategic Investments
The company has made notable strategic investments to diversify its portfolio and tap into emerging technologies:
Clas-SiC Wafer Fab Limited (UK): Archean has invested in this UK-based silicon carbide wafer foundry, securing technology exclusivity in India for semiconductor manufacturing. The company has already subscribed to shares worth GBP 15 million, demonstrating its commitment to this venture.
Offgrid Energy Labs Inc (USA): Archean has executed agreements to invest USD 12 million in this zinc-bromide battery technology company. The investment aligns with Archean's strategy to enter the energy storage sector, focusing on renewable energy and industrial storage applications.
These investments showcase Archean Chemical Industries' efforts to expand beyond its traditional marine chemicals business and position itself in high-growth technology sectors.
Conclusion
Archean Chemical Industries Limited has delivered a strong performance in the first quarter, with significant revenue growth and improved profitability. The company's strategic investments in emerging technologies demonstrate its commitment to long-term growth and diversification. However, the slight decline in EBITDA margin suggests that managing operational efficiency will be crucial for sustaining profitability in the coming quarters.
Investors and analysts will likely keep a close eye on how these strategic investments unfold and their potential impact on the company's future performance and market position.
Historical Stock Returns for Archean Chemical Industries
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+1.89% | -2.69% | +5.09% | +13.52% | -13.85% | +45.11% |