Chemcon Speciality Chemicals Limited., a Indian specialty chemicals manufacturer announced its results for the second quarter ended Sept 30, 2022.
Q2 Results- QoQ
The company’s net profit declined 69.3% to Rs 78.23 million for the period ended Sept 30, 2022 as against net profit of Rs 254.57 million for the previous quarter.
Net sales fell 35.2% to Rs 579.19 million during the period ended Sept 30, 2022 as compared to Rs 894.11 million during the previous quarter.
Q2 Results- YoY
The company reported 46.3% drop in net profit to 78.23 million for the period ended Sept 30, 2022 as against net profit of Rs 145.69 million for the prior-year quarter.
Net sales decreased 5.4% to Rs 579.19 million during the period ended Sept 30, 2022 as compared to Rs 612.4 million during the prior-year quarter.
Commenting on the results, Kamal Aggarwal, Chairman & MD said, “Q2 FY23 business performance has been slow primarily due to lower volume offtake from pharmaceutical manufacturers. Most of our clients are facing challenges due to adverse pricing scenarios across formulation & softening of demand. For Q2 FY23, we have registered a revenue of Rs 580 million for the quarter as both HMDS & CMIC have underperformed in the domestic market. On the other hand, robust performance in the export market has partly negated the subdued performance. Also, inorganic bromides have been affected marginally due to inconsistent sourcing of key raw material bromine.”
“As a part of diversification strategy and business expansion, we have successfully commenced the commercial production of Bromobenzene at P9 facility which will cater to Agrochemical manufacturers in the global market. With the expansion of Bromobenzene, we will be adding Organic Bromides in our product basket. We are awaiting necessary approvals from regulatory authorities for another pharma chemical, Guanine at P9 Unit. We will be adding a few other chemicals which are imported in India at P10 Unit and expect to commence production by Q1FY24. Recently, we have purchased a land parcel at Gothda, near Vadodara for future leg of expansion and invested in a solar power plant for captive purpose which will reduce our power cost,” said Aggarwal.
“Over the years, we have invested in the company to improve the product basket and add meaningful capacities. The company is also looking to establish a vast presence in the export market with a diversified product mix. India imports many pharmaceutical chemicals, which offers plenty of space for a producer like us to become a long-term trustworthy and sustainable domestic partner,” added Aggarwal.
H1 Results- YoY
The company reported 18.9% growth in net profit to Rs 332.81 million for the period ended Sept 30, 2022 as against net profit of Rs 279.82 million for the prior-year 1st half period.
Net sales increased 24.4% to Rs 1.47 billion during the period ended Sept 30, 2022 as compared to Rs 1.18 billion during the the 6 months period last year.
Chemcon Speciality Chemicals Limited is a leading player in the Indian specialty chemicals sector engaged in the manufacture and sale of specialized chemicals, such as HMDS & CMIC which are predominantly used in the pharmaceuticals industry and inorganic bromides, namely Calcium Bromide, Zinc Bromide and Sodium Bromide, which are predominantly used as completion fluids in the oilfields industry.