India’s Laxmi Organic Industries Reports 379.3% YoY Net Profit Growth in Q1FY21-22

Laxmi Organic Industries Ltd., a specialty chemicals manufacturer based in India announced its results for the first quarter ended June 30, 2021.

Q1 Results- QoQ

The company’s net profit grew 182% to Rs 102.32 crores ($13.8 million) for the period ended June 30, 2021 as against net profit of Rs 36.34 crores ($4.9 million) for the previous quarter.

Net sales increased 42.1% to Rs 740.62 crores ($99.5 million) during the period ended June 30, 2021 as compared to Rs 521.27 crores ($70.1 million) during the previous quarter.

Q1 Results- YoY

The company’s net profit grew 379.3% to Rs 102.32 crores ($13.8 million) for the period ended June 30, 2021 as against net profit of Rs 21.35 crores ($2.9 million) for the prior-year quarter.

Net sales increased 83.3% to Rs 740.62 crores ($99.5 million) during the period ended June 30, 2021 as compared to Rs 404.13 crores ($54.3 million) during the prior-year quarter.

Mr. Ravi Goenka, Chairman & Managing Director, said, “I am pleased to announce that Laxmi Organic Industries has delivered a robust financial performance in this quarter. The operating revenues came in at INR 689.7 crores ($92.7 million) as against INR 353.7 crores ($47.5 million) in Q1FY21 and INR 467.4 crores ($62.8 million) in Q4FY21. The strong growth in revenues was fueled by 102% and 126% Y-o-Y growth in Acetyl Intermediates (AI) and Specialty Intermediates (SI), respectively. Similarly, the AI and SI grew by 31% and 53% respectively on Q-o-Q basis.

The strong performance in AI business was attributable to higher realizations, whereas the SI business was driven by both volume and pricing. Our SI business recorded the highest volumes this quarter and delivered 20% export revenue. The demand from end-user industries also remained strong. This resulted in corresponding growth of 268% and 431% Y-o-Y basis in EBITDA and PAT, respectively. Similarly, the EBIDTA and PAT grew by 146% and 216% respectively on Q-o-Q basis.”

He also added “The floods in Maharashtra in July impaired our operations in Mahad, and our SI unit has been severely impacted. The SI unit has suffered a complete shut down in operations with flooding, lack of electricity, and other structural damages brought about by the flood. We are insured adequately, including loss of profit. Currently we are in the midst of assessing our damages and the insurance survey is underway, suffice to say that this will have a significant impact on our performance for this quarter.

As a company, we are strong and resilient, and we have proved that time and again. So, we are certain that we will be able to emerge stronger from this challenge as well.”

Laxmi Organic Industries Ltd is engaged in the business of manufacture and selling of Acetyl Intermediates and Speciality Intermediates.