Himadri Speciality Chemical Ltd's Q2FY19 standalone net profit rises 44.82% yoy to Rs74.09cr

The company’s standalone revenue stood at Rs601.77cr, up 28.58% yoy but down 0.49% qoq.

Nov 12, 2018 10:11 IST India Infoline Research Team

Himadri Speciality Chemical Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 601.77 28.6
EBITDA 129.76 26.5
EBITDA Margin (%) 21.6 [36]
Net Profit (adjusted) 74.09 44.8
***EBITDA margin change is bps
Himadri Speciality Chemical Ltd's standalone revenue for the quarter came in at Rs601.8cr, up by 28.6% yoy. The operating profit for the quarter increased by 26.5% yoy to Rs129.8cr. However, the EBITDA margin declined by ~36bps yoy to 21.6% in Q2FY19. The adjusted net profit after tax stood at ~Rs74.1cr, up by 44.8% yoy.

• The significant rise in revenue is a combination of increase in volumes and improved product mix. Gross margin for the quarter remained stable yoy at 32.9% in Q2FY19 (32.7% in Q2FY18).
• EBITDA margin witnessed a marginal decline by ~36bps despite higher volumes, on account of likely pressure in energy cost due to volatile crude oil prices and forex impact during the quarter. The other expenses increased by 41.5% yoy to Rs55.1cr in Q2FY19. This includes forex loss of ~Rs12.1cr during the quarter.
• Finance cost decreased by 15.8% yoy to Rs17.5cr during the quarter. The total borrowing of the company came down to Rs537.7cr as on September 30, 2018 vs. Rs595.4cr as on March 31, 2018. The debt-equity ratio as on September 30, 2018 stood at 0.38x.
• The effective tax rate of the company for the quarter stood at ~30% vs. ~32% in Q2FY18. This contributed towards higher net profit of the company.
• The board approved proposal for raising Rs1,000cr by way of issue of eligible securities, subject to shareholders and other authorities’ approval.

Technical View:

Himadri Speciality Chemical Ltd is currently trading at Rs. 140.40, down by 1.5 points or 1.06% from its previous closing of Rs. 141.90 on the BSE.
The scrip opened at Rs. 143.90 and has touched a high and low of Rs. 143.90 and Rs. 135 respectively. So far 11,91,412 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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