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.

Bodal Chemicals Ltd, a prominent player in the chemical industry, has received a revised credit rating from India Ratings & Research, signaling a stable outlook for the company's financial instruments. The rating agency has assigned an 'IND BBB+/Stable' rating to multiple financial instruments of the company, reflecting its moderate degree of safety regarding timely servicing of financial obligations.

Rating Details

The revised ratings apply to several financial instruments of Bodal Chemicals:

Key Highlights

• The term loan amount has been reduced from INR 5,372.00 million to INR 5,073.60 million.
• The outlook for both the term loan and the existing working capital limits has been revised to stable.
• An additional working capital limit of INR 590.00 million has been assigned the same 'IND BBB+/Stable' rating.
• The non-fund based working capital limits maintain their 'IND A2' rating, which has been affirmed by the agency.

Implications

The 'BBB+' rating indicates that Bodal Chemicals has a moderate degree of safety regarding timely servicing of financial obligations. This rating suggests that the company faces some risk, particularly under changing economic conditions.

The stable outlook implies that India Ratings expects Bodal Chemicals to maintain its current financial and operational performance in the near to medium term.

Disclosure and Compliance

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Bodal Chemicals has promptly disclosed this information to the stock exchanges. The company has stated that the updated credit rating information will be available on its official website at www.bodal.com .

This credit rating revision provides stakeholders with an updated assessment of Bodal Chemicals' financial health and its ability to meet its financial commitments. It serves as a valuable indicator for investors, lenders, and other market participants in evaluating the company's creditworthiness.