Rossari Biotech Shares Tumbled Over 2%: Released Q2 FY25 Results

Rossari Biotech Limited, a leading manufacturer of speciality chemicals focused on intelligent and sustainable solutions, has released its financial results for the quarter ending September 30, 2024. In Q2 FY25, the company achieved a revenue growth of 3.1%, reaching ₹ 498.4 crore compared to ₹483.5 crore in Q2 FY24. EBITDA also improved by 3.6%, totalling ₹65.9 crore, resulting in an EBITDA margin of 13.2%, slightly up from 13.1% the previous year. Profit After Tax (PAT) saw a significant increase of 7.3%, rising to ₹35.3 crore from ₹32.9 crore, while diluted Earnings Per Share (EPS) grew to ₹6.4 from ₹6.0. 

Half-Yearly Performance

For the first half of FY25, revenue from operations surged by 10.5% to ₹988.0 crore, up from ₹894.1 crore in H1 FY24. EBITDA rose by 7.8% to ₹130.8 crore, with an EBITDA margin of 13.2%, slightly down from 13.6%. PAT for H1 FY25 increased by 12.9% to ₹70.2 crore compared to ₹62.2 crore in the previous year, and diluted EPS reached ₹12.7, up from ₹11.3.

Management’s Commentary 

Commenting on the performance, in a joint statement, Mr. Edward Menezes, Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director, said “We have reported a steady performance this quarter, reflecting the resilience of our business amidst a dynamic market environment. Our HPPC division continues to demonstrate consistent growth, while the Textile business is still navigating headwinds, with a recovery expected in the next calendar year. AHN Business remained stable during the quarter. On the export front, we are proud to have expanded our global operations, with several geographies emerging as key drivers of future growth. We registered a strong performance in our export markets by targeting new customers in both new and existing geographies and increasing our wallet share with our partners” 

He added, ”In H1 FY25, exports grew by 32%, providing support to overall performance amidst softer domestic growth. While the domestic market is also poised for expansion, we expect exports to outpace domestic growth, further strengthening our position in international markets. We continue to pioneer intelligent and sustainable solutions across industries, enhancing everyday life through our eco-friendly and technology-driven offerings. Our focus on innovation and customer-centric solutions enables us to stay ahead of industry trends, delivering value through products that are both high in quality and sustainability.” 

He further stated. “With a diversified product portfolio, agile manufacturing capabilities, and a strong balance sheet, we believe we are well-positioned to capitalize on emerging opportunities and drive healthy growth for the foreseeable future. As a growth-focused Company, we remain committed to innovation, continuously developing tailored solutions that meet the evolving needs of our custome₹ We are working towards expanding our global footprint through our own manufacturing set up and sales & distribution network overseas. This approach strengthens our confidence in delivering sustainable operational and financial performance while creating long-term value for all our stakeholders”

On October 21, 2024, Rossari Biotech shares opened at ₹880.00  and touched the day low of ₹852.25 at 09:30 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.