Chemcon Speciality Chemicals Limited, an Indian specialty chemicals manufacturer announced its results for the third quarter ended December 31, 2020.
Q3 Results- QoQ
The company’s net profit increased 5.71% to Rs 16.47 crores ($2.3 million) for the period ended December 31, 2020 as against net profit of Rs 15.58 crores ($2.1 million) for the previous quarter.
Net sales grew 5.31% to Rs 64.80 crores ($8.9 million) during the period ended December 31, 2020 as compared to Rs 61.53 crores ($8.4 million) during the previous quarter.
Q3 Results- YoY
The company’s net profit grew 77.48% to Rs 16.47 crores ($2.3 million) for the period ended December 31, 2020 as against net profit of Rs 9.28 crores ($4.3 million) for the prior-year quarter.
Net sales increased 16.27% to Rs 64.80 crores ($8.9 million) during the period ended December 30, 2020 as compared to Rs 55.73 crores ($7.7 million) during the prior-year quarter.
Commenting on the results, Kamal Aggarwal, Chairman & MD said, “Both Pharma chemicals and Oilwell completion chemicals businesses has reported a decent performance during this quarter. There was an overall revenue growth of 16% in the topline and 25% volume growth on yoy basis. There has been meaningful demand in pharma industry which has elevated our CMIC & HMDS chemicals business.
Our oilwell completion chemical segment has recovered during the quarter on back of rebound in oil & gas industry expansion activities which has partially negated our muted performance in H1FY21. We faced shortage of bromine which is one of our key raw material for manufacturing bromide and therefore had lower than anticipated production. Although, the business environment is improving and evolving at the same time. We look forward for the improving demand of range of bromides in the endmarket.
Total capital expenditure incurred for the 9MFY21 has been Rs 25 crores ($3.4 million) of which Rs 21 crores ($2.9 million) has been done through internal accrual and balance from IPO proceeds. From IPO proceeds, Rs 4.3 crores ($0.59 million) has been utilized for expansion of manufacturing facilities whereas Rs 40 crores ($5.5 million) has been incurred for working capital requirement.
Our new chemical business 4CBC has been successfully commercialised and has started contributing to our topline. Our endeavor is to shift to more value-added solutions which will help to sustain our business and create new leap of growth. We foresee business momentum to continue on the back of our recent capacity expansion, new commercial products, robust demand in pharma chemicals and economic recovery in Oilwell completion chemicals.”