Bodal Chemicals Limited, a leading integrated manufacturer of dyestuff and dye intermediates, has reported a solid performance for the first quarter. The company's financial results showcase growth in revenue and significant improvement in profitability.

Financial Highlights

• Total revenue reached ₹458.00 crore, marking an 8% year-on-year growth
• EBITDA surged by 40% to ₹52.00 crore, with an improved margin of 11.3%
• Consolidated net profit stood at ₹9.53 crore

Segment Performance

The company's various divisions showed mixed results:

Operational Insights

• Dye Intermediates: The 4% decline in revenue was attributed to lower raw material prices, particularly aniline oil and ethylene.
• Dyestuff: The 10% decrease was due to reduced raw material prices affecting finished good prices.
• Basic Chemicals: Grew by 15% year-on-year, driven by increased raw material prices, particularly sulfur.
• Chlor-alkali: Showed an 8% growth, with normal caustic soda prices and volumes.
• Benzene Derivatives: The newly operational unit contributed ₹13.00 crore to revenue but operated at only 20% capacity utilization.

Strategic Developments

• The company expects antidumping duty benefits on TCCA (Trichloroisocyanuric Acid) to materialize in Q3 and Q4.
• Management maintains a revenue guidance of approximately ₹1,900.00 crore.
• Bodal Chemicals targets debt reduction of ₹150.00-175.00 crore through asset sales and scheduled repayments.

Future Outlook

Ankit Patel, Executive Director of Bodal Chemicals, stated, "In today's environment where Indian suppliers are emerging as preferred partners globally, the company has a good opportunity to grow further in the future."

The company aims to improve capacity utilization in its chlor-alkali business to 90-95% in the coming quarters. Additionally, the benzene derivatives segment is expected to ramp up, potentially reaching 70-80% utilization by Q3.

Upcoming Corporate Events

The company has announced its 39th Annual General Meeting, to be held on September 26, through video conferencing. The e-voting period for shareholders will be from September 23 to September 25.

Bodal Chemicals continues to focus on consolidating its current operations and unlocking more value from its existing businesses, particularly in the benzene derivatives and TCCA segments. With a strategic approach to debt reduction and capacity utilization improvement, the company appears well-positioned to navigate the evolving chemical industry landscape.

Bodal Chemicals , a leading manufacturer of dyes and chemicals, has announced its financial results for the first quarter, showcasing strong growth in both revenue and profitability.

Financial Highlights

• Revenue: The company reported a consolidated revenue of Rs. 4,582.52 million, marking an 8% increase from Rs. 4,244.26 million in the same quarter last year.
• EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at Rs. 516.60 million, representing a substantial growth of 39.9% compared to Rs. 369.10 million in the corresponding quarter of the previous year.
• Net Profit: Bodal Chemicals witnessed a remarkable turnaround in its bottom line, reporting a net profit of Rs. 95.33 million, compared to a loss of Rs. 11.70 million in the corresponding quarter of the previous year.
• Earnings Per Share (EPS): The company's EPS improved to Rs. 0.76, up from a negative Rs. 0.09 in the same quarter last year.

Segment Performance

The company's performance across various segments showed mixed results:

Operational Highlights

• The company's Chinese and Indonesian subsidiaries delivered satisfactory overall performance.
• Sener Boya, the Turkish subsidiary, continues to face challenges due to hyperinflation in the country.
• Bodal Chemicals has started normal production at its Saykha plant for Benzene downstream products, although margins remain under pressure due to stiff competition and slower demand.

Management Commentary

Bhavin S. Patel, Executive Director of Bodal Chemicals Ltd., commented on the results: "We are pleased with our performance this quarter, which demonstrates the resilience of our business model. The significant growth in our Basic Chemicals segment and the steady performance of our Chlor Alkali business have contributed to our strong results. While challenges persist in certain areas, we are confident that our strategic initiatives and focus on operational efficiency will drive sustainable growth in the coming quarters."

Future Outlook

Despite facing some headwinds in specific segments, Bodal Chemicals remains optimistic about its future prospects. The company expects that better volume and improved realization across divisions will help enhance both top and bottom lines in the coming periods.

Bodal Chemicals continues to focus on its core strengths in the chemical industry, leveraging its integrated business model and diverse product portfolio to navigate market challenges and capitalize on growth opportunities.

As the company moves forward, it aims to further strengthen its market position, explore new growth avenues, and enhance shareholder value through sustained operational excellence and strategic initiatives.