Yasho Industries , a leading manufacturer of specialty chemicals, has announced its plans to expand production capacity to 26,000 tonnes per annum by FY27, focusing on niche specialty chemicals for rubber, lubricant, and aroma segments. This strategic move comes as the company reported a 10% year-on-year revenue growth for Q2, despite facing challenges in the global market.

Financial Highlights

• Revenue: ₹183.60 crore, up 9.6% year-on-year
• EBITDA margin: 18.20%, improved from previous quarter
• PAT margin: 2.65%, showing resilience in challenging conditions
• Volume growth: 26.5% year-on-year, indicating strong demand

Strategic Focus and Expansion Plans

Yasho Industries is strengthening its position in the specialty chemicals market with a clear focus on:

1. Capacity Expansion: Aiming to reach 26,000 TPA by FY27
2. Global Distribution: Enhancing its international network
3. R&D Investment: Driving product innovation
4. Export Growth: Targeting increased export share

The company's emphasis on niche specialty chemicals for rubber, lubricant, and aroma segments aligns with its goal to maintain EBITDA margins above 18%.

Performance Analysis

Despite facing pricing pressures and tariff-related challenges, particularly in the U.S. market, Yasho Industries demonstrated resilience with a 26.5% volume growth. The company's industrial business accounted for 86% of total revenue, while exports contributed 65% despite the challenging global scenario.

New Developments and Future Outlook

Yasho Industries has made significant strides in strengthening its market position:

1. Long-term Supply Agreement: Signed a 15-year contract for lubricant additives, expected to generate approximately ₹150 crore in annual revenue from FY27.
2. R&D Expansion: Inaugurated a new R&D laboratory at Pakhajan, enhancing innovation capabilities.
3. Operational Efficiency: Focus on cost discipline and operating efficiencies to maintain profitability.

Mr. Parag Jhaveri, Managing Director & CEO, commented, "We believe the demand softness has bottomed out. While tariff challenges persist, our diversification efforts, operational agility, and strong customer relationships position us well for recovery and sustainable growth."

The company remains focused on strengthening its balance sheet, improving working capital efficiency, and progressively reducing leverage. With increasing order visibility and operational ramp-up, Yasho Industries is confident of achieving strong growth.

As Yasho Industries navigates through global market challenges, its strategic expansion plans and focus on niche specialty chemicals position it well for future growth. Investors and industry observers will be keenly watching the company's progress towards its ambitious capacity expansion target and its ability to maintain strong margins in a competitive global market.

Yasho Industries Limited , a specialty chemicals manufacturer, has reported growth in both revenue and net profit for its latest quarter, alongside key corporate governance decisions. The company's financial results and board meeting outcomes reveal important developments for investors and market watchers.

Financial Performance

Yasho Industries reported consolidated quarterly revenue of Rs 183.30 crores, with a net profit of Rs 486.74 lakhs. On a standalone basis, the company posted revenue of Rs 176.18 crores and a net profit of Rs 286.92 lakhs for the quarter ended September 30.

Board Meeting Outcomes

The Board of Directors of Yasho Industries convened and approved several significant items:

1. Financial Results: The board approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30.

2. Promoter Reclassification: The board considered and approved requests from certain promoter group shareholders for reclassification to public shareholder status.

Promoter Reclassification

A key development from the board meeting was the approval of reclassification requests from certain promoter group shareholders. The individuals seeking reclassification are:

• Mr. Rajanikant Desai
• Mrs. Kalpana Desai
• Rajanikant Desai HUF

These shareholders have requested to be reclassified from "Promoter Group Shareholder" to "Public Shareholder" status. This reclassification is subject to approvals from stock exchanges and shareholders, as per SEBI regulations.

The board noted that the reclassification is in line with a Family Settlement Agreement between the outgoing promoter group shareholders.

Compliance and Regulatory Aspects

The company has confirmed its compliance with various regulatory requirements, including:

• Maintaining shareholding below 10% for the reclassified shareholders
• Relinquishing control over company affairs by the reclassified shareholders

The reclassification process will proceed in accordance with SEBI regulations, including the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investors and market participants should note that these developments may have implications for the company's shareholding structure and potentially its market perception. As always, it's advisable to consider such corporate actions alongside financial performance when evaluating investment decisions.