NewsEarningsNath Industries Reports Tenfold Increase in Q1 Net Profit Despite Chemical Plant ShutdownNath Industries Reports Tenfold Increase in Q1 Net Profit Despite Chemical Plant Shutdown
Nath Industries Limited reported a significant increase in net profit for Q1 FY2024, rising to Rs 379.37 crore from Rs 36.77 crore in the same quarter last year. Total income from operations was Rs 118.25 crore. The paper manufacturing segment generated revenue of Rs 746.31 crore, while the chemical production segment contributed Rs 426.32 crore. The company temporarily shut down its Sulphuric acid plant no. 2 for maintenance, which will increase its capacity by 20 TPD post-maintenance. Total assets stood at Rs 4,157.61 crore, with total liabilities at Rs 1,551.60 crore.
*this image is generated using AI for illustrative purposes only.
Nath Industries Limited, a prominent player in the paper manufacturing and chemical production sectors, has reported a significant surge in its net profit for the quarter ended June 30. The company's financial performance showcases remarkable growth despite a temporary shutdown of one of its chemical plants.
Financial Highlights
- Net profit soared to Rs 379.37 crore, marking a tenfold increase from Rs 36.77 crore in the same quarter last year.
- Total income from operations reached Rs 118.25 crore, slightly down from Rs 130.03 crore in the previous quarter.
- Basic and diluted earnings per share stood at Rs 2.00.
Segment-wise Performance
Nath Industries operates in two main segments:
- Paper Manufacturing: This segment generated revenue of Rs 746.31 crore.
- Chemical Production: The chemical division contributed Rs 426.32 crore to the total revenue.
Chemical Plant Shutdown and Capacity Expansion
The company temporarily shut down its Sulphuric acid plant no. 2 for annual maintenance and modifications. This strategic move is expected to yield positive results in the future:
- The shutdown allowed for essential maintenance work and plant modifications.
- Post-maintenance, the sulphuric acid manufacturing capacity of Plant no. 2 will increase by 20 TPD (Tonnes Per Day).
Management Commentary
Akash Kagliwal, Managing Director of Nath Industries Limited, stated, "We are pleased with our Q1 performance, which demonstrates our resilience and operational efficiency. The temporary shutdown of our chemical plant for maintenance and upgrades is a strategic decision that will enhance our production capabilities in the long run."
Financial Position
As of June 30:
| Segment | Amount (in crore Rs) |
|---|---|
| Total assets | 4,157.61 |
| Paper segment assets | 2,570.93 |
| Chemical segment assets | 1,586.69 |
| Total liabilities | 1,551.60 |
Future Outlook
With the increased manufacturing capacity of its sulphuric acid plant and strong performance in both paper and chemical segments, Nath Industries Limited appears well-positioned for continued growth in the coming quarters.
The company's ability to significantly increase its net profit, even with a temporary plant shutdown, underscores its operational efficiency and strong market position in both the paper and chemical industries.
Note: The financial results have been reviewed by the Audit Committee and approved by the Board of Directors of Nath Industries Limited on August 12.
Historical Stock Returns for Nath Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.24% | -5.92% | -17.48% | -33.71% | -11.01% | -8.25% |
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