NewsEarningsShankar Lal Rampal Dye-Chem Reports 20% Profit Growth and 23.34% Revenue Increase in Q1Shankar Lal Rampal Dye-Chem Reports 20% Profit Growth and 23.34% Revenue Increase in Q1
Shankar Lal Rampal Dye-Chem Limited (SRD) reported robust Q1 financial results with total revenue of ₹12,226.70 crore and net profit after tax of ₹423.61 crore, showing 23.34% and 20% year-over-year growth respectively. The company's Board approved a backward integration plan to acquire a manufacturing facility in Bhilwara, Rajasthan, focusing on home care and cleaning products. This move aims to transition from trading to integrated manufacturing, reducing dependency on third-party suppliers.
*this image is generated using AI for illustrative purposes only.
Shankar Lal Rampal Dye-Chem Limited (SRD) has reported robust financial performance for the first quarter, accompanied by strategic plans for business expansion. The company's latest financial results and board meeting outcomes reveal significant growth and ambitious future initiatives.
Q1 Financial Highlights
SRD demonstrated impressive growth in both revenue and profitability for Q1:
| Financial Metric | Amount (₹ in crore) |
|---|---|
| Total Revenue from Operations | 12,226.70 |
| Net Profit Before Tax | 566.76 |
| Net Profit After Tax | 423.61 |
The company's performance shows a remarkable year-over-year improvement:
- Profit growth: 20% increase
- Revenue growth: 23.34% increase
This strong financial performance underscores SRD's robust market position and operational efficiency.
Earnings Per Share
The company reported an Earnings Per Share (EPS) of ₹0.66 for the quarter, reflecting its solid profitability and potential value for shareholders.
Strategic Expansion Plans
In a significant move towards vertical integration, SRD's Board of Directors has approved a proposal for backward integration. The company plans to acquire and commission a state-of-the-art manufacturing facility adjacent to its main storage and mixing unit in Bhilwara, Rajasthan.
Key points of the expansion plan include:
- Transition from a trading model to an integrated manufacturing setup
- Focus on home care and cleaning products, including:
- Dish wash gel
- Fabric wash liquid
- Floor cleaner
- Toilet cleaner
- Glass cleaner
- Hand wash
- Detergent powder
- Aim to reduce dependency on third-party suppliers and enhance supply chain security
- Authorization for Mr. Anil Kabra, Director, to proceed with the acquisition process
The Board has also discussed potential future expansions, including new product lines to support long-term growth objectives.
Outlook
SRD's strong Q1 performance, coupled with its strategic expansion plans, positions the company for potential sustained growth. The move towards integrated manufacturing is expected to strengthen its market position in the home care and cleaning products sector.
Investors and stakeholders will likely watch closely as SRD implements these expansion plans and their impact on future financial performance.
Note: All financial figures are in Indian Rupees (₹) and are based on the unaudited financial results for the quarter ended June 30, as approved by the company's Board of Directors.
Historical Stock Returns for Shankar Lal Rampal Dye-Chem
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.80% | -2.32% | -0.46% | +7.60% | -28.94% | -35.13% |
17
