Thirumalai Chemicals , a leading specialty chemicals manufacturer, reported a significant decline in its financial performance for the first quarter, as global headwinds and operational challenges impacted its bottom line.

Financial Performance

The company's consolidated total income declined by 19% year-over-year to ₹452.00 crore in Q1, down from ₹558.00 crore in the same period last year. The consolidated EBITDA turned negative at ₹25.00 crore, compared to a positive EBITDA of ₹34.00 crore in Q1 of the previous year. Consequently, Thirumalai Chemicals reported a net loss of ₹60.00 crore, a stark contrast to the ₹5.00 crore profit recorded in the corresponding quarter of the previous year.

NM: Not Meaningful

Operational Challenges

The company faced several operational challenges during the quarter:

1. Global Headwinds: Soft demand, inflation in energy and raw materials, excess capacity, and geopolitical trade frictions affected the global chemical industry.

2. Lower Spreads: The company experienced lower spreads across its product portfolio, particularly in Phthalic Anhydride (PAn).

3. Dahej Plant Ramp-up: The new facility at Dahej operated at low utilization during its ramp-up phase, impacting overall performance.

4. Malaysia Operations: The company's subsidiary, Optimistic Organic Sdn. Bhd. (OOSB) in Malaysia, incurred one-time retrenchment costs due to the shutdown of its Maleic Anhydride (MAn) reactor.

5. Increased Interest Expenses: The standalone financials bore the full burden of interest costs on new borrowings for the USA project.

Operational Highlights

Despite the challenges, Thirumalai Chemicals achieved some operational milestones:

• Completed re-catalysation of Phthalic Anhydride reactor P144.
• Achieved highest quarterly Fumaric Acid production at its Ranipet plant.
• The Dahej plant reached 75%+ average throughput in June, with a production capacity of 175 TPD.
• Reduced specific steam consumption by over 10% through equipment overhaul and efficiency improvements.

Future Outlook

The company remains optimistic about its future prospects:

• Expects improved utilization at the Dahej plant to 85-90% from Q2 onwards.
• Focuses on value-added downstream Esters plant in Malaysia for better unit economics.
• On track to launch its USA project by December, which is expected to strengthen its global position in Maleic Anhydride and food ingredients.

Mr. R. Parthasarathy, Chairman & Managing Director of Thirumalai Chemicals, commented on the results, stating, "While the quarter presented significant challenges, we remain committed to our long-term strategy of expanding our global footprint and focusing on high-value specialty chemicals. The ongoing ramp-up of our Dahej facility and the progress on our USA project are crucial steps in this direction."

As Thirumalai Chemicals navigates through these challenging times, the company's focus on operational efficiency, capacity utilization, and strategic expansion will be key to its recovery and future growth in the specialty chemicals sector.

Thirumalai Chemicals Limited (TCL) has provided clarification on the utilization of proceeds from its proposed preferential share issue, addressing concerns raised by stock exchanges. The company's move comes in response to comments received from the BSE and NSE regarding its application for in-principle approval for the share issue.

Key Points of Clarification

Utilization of Funds

Thirumalai Chemicals has confirmed that the ₹110.62 crore allocated for General Corporate Purposes (GCP) will not be used for investments in subsidiaries, joint ventures, or associates. This clarification addresses a specific point in the original Extra-ordinary General Meeting (EGM) notice dated June 19, 2025, and its corrigendum dated July 7, 2025.

Intended Use of GCP Funds

The company stated that the funds earmarked for general corporate purposes may be utilized for:

• Ongoing corporate exigencies
• Contingencies
• Company expenses
• Other permissible general purposes as decided by the Board

Regulatory Compliance

TCL's clarification aligns with the requirements of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company submitted this information to both the BSE Limited and the National Stock Exchange of India Limited on July 24, 2025.

Company's Statement

R. Pramod Kumar, Company Secretary of Thirumalai Chemicals Limited, signed the official communication, emphasizing the company's commitment to transparency and regulatory compliance.

This clarification by Thirumalai Chemicals Limited provides investors and regulatory bodies with a clearer understanding of how the proceeds from the preferential issue will be utilized, particularly focusing on the allocation for general corporate purposes.