Kesar Petro Products , a leading manufacturer of Phthalocyanine Blue Crude and its derivatives, has reported robust financial results for the first quarter. The company's focus on operational efficiency, product innovation, and market diversification has yielded significant improvements in both revenue and profitability.

Financial Highlights

• Revenue from operations reached Rs. 4,953.00 lakhs, marking an 8.14% year-on-year increase
• EBITDA surged by 148.25% to Rs. 921.00 lakhs
• Profit After Tax (PAT) rose by 177.83% to Rs. 589.00 lakhs
• EBITDA margin expanded to 18.59% from 8.10% in the corresponding quarter of the previous year
• PAT margin improved to 11.89% from 4.63% in the same quarter last year

Operational Performance

Kesar Petroproducts is currently operating at 60-65% capacity utilization across its product range. The company aims to increase this to 75% in the next two quarters. The revenue composition includes:

• 80% from pigments
• 20% from CPC Blue Crude

The focus remains on higher-margin downstream pigments, which have significantly improved the company's profitability.

Strategic Initiatives

1. Capacity Expansion: The company is working on unlocking capacities for its pigment portfolio, which is expected to drive margin improvements.

2. By-product Utilization: Kesar Petroproducts is developing a complex fertilizer plant using waste from pigment production. Commercial production is expected to commence from January 2026.

3. Power Plant Integration: A 2 MW captive power plant is being integrated with the fertilizer plant to achieve economies of scale and improve overall efficiency.

4. Modernization: The company is investing in plant modernization to reduce labor dependency and increase production efficiency.

Future Outlook

Management has provided guidance for the future:

• 20-25% revenue growth
• 12-15% bottomline growth
• EBITDA margins targeted in the 18-19% range

The company plans to reduce debt by 20-25% in the current fiscal year and aims for long-term growth of 20-25% per annum through operational efficiency, product diversification, and waste utilization initiatives.

Expansion into Fertilizers

The new complex fertilizer plant, utilizing waste from pigment production, is expected to contribute 20-25% of revenue at 75% utilization. This initiative not only creates a new revenue stream but also aligns with the company's sustainability goals.

Shreyas Sharma, CEO of Kesar Petroproducts, commented on the fertilizer project: "We have the raw materials. We have ammonia in our stock. We have phosphoric acid. We have sulfuric acid. So, we have those things. So those are already our raw materials."

Conclusion

Kesar Petroproducts' strong quarterly performance demonstrates the effectiveness of its strategic initiatives. With a focus on high-margin products, operational efficiency, and innovative waste utilization, the company is well-positioned for sustainable growth in the coming quarters. Investors will be watching closely as the new fertilizer plant comes online, potentially driving further improvements in revenue and profitability.

Kesar Petro Products , a leading petrochemical company, has resubmitted its standalone financial results for the quarter ended June 30, following a discrepancy notification from the Bombay Stock Exchange (BSE). The company clarified that there were no changes in the financial figures, with the resubmission only addressing the format as prescribed under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Highlights

The resubmitted results showcase a strong performance for Kesar Petro Products in the first quarter:

• Revenue Growth: The company reported revenue from operations of ₹49.53 crore, marking an 8.1% increase year-over-year from ₹45.80 crore in the same quarter last year.

• Profit Surge: Net profit after tax witnessed a remarkable jump of 177.8%, reaching ₹5.89 crore compared to the previous year's figure.

• EBITDA Performance: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 148.5% to ₹9.21 crore. The EBITDA margin expanded significantly to 18.5% from 8.1% in the corresponding quarter of the previous year.

• Earnings Per Share: The company's earnings per share improved to ₹0.61 from ₹0.22 in the same period last year.

Key Financial Metrics

Other Notable Points

• The company's finance costs increased to ₹0.57 crore from ₹0.26 crore in the previous year.
• The Board of Directors approved these financial results in their meeting held on August 8.

Regulatory Compliance

Kesar Petro Products emphasized its commitment to regulatory compliance in its communication to the BSE. The company stated, "We regret the oversight and assure you of our continued compliance with the applicable regulations." This resubmission underscores the company's dedication to transparency and adherence to regulatory standards.

The resubmitted results, along with the Limited Review Report, have been filed with the BSE, ensuring that investors and stakeholders have access to accurate and compliant financial information.

As Kesar Petro Products continues to demonstrate strong financial performance, investors will likely keep a close watch on the company's growth trajectory and operational efficiency in the coming quarters.