Vishnu Chemical soars after robust Q3 results

15 Feb 2022 , 02:55 PM

On a consolidated basis, profit before tax (PBT) spurted 674.37% year-on-year to Rs 33.84 crore in Q3 December 2021. EBITDA surged 198% to Rs 46 crore in Q3 December 2021.

EBITDA margin stood at 15% in Q3 December 2021, higher than 11% in Q3 December 2020, due to improvement in operating environment, better pricing power and therefore, operating leverage.

Total expenses rose 105% year-on-year to Rs 265.57 crore in Q3 December 2021. Cost of raw material consumed increased 214.90% to Rs 112.01 crore. Power and Fuel expense rose 64.42% to Rs 11.23 crore.

The company said it commenced operations at the backward integration project at Visakhapatnam unit in the ongoing quarter Q4FY22. On the subsidiary front, the expansion of 50% increase in capacity of Barium chemicals is on-schedule to commence operations in Q4FY22.

Quarterly production was impacted due to record heavy rainfall in Q3FY22 in Tirupati and allied regions. However, the decline in volumes were offsetted by the increase in realisations to a larger extent, the company said.

The firm said it is focused on prudent allocation of capital to meet its rising working capital requirement from accounts receivable due to higher net sales and also increase in outflows towards raw material costs and freight expenses given the disruption in the global supply chain.

It is really satisfying to share the Q3FY22 quarterly results. The first nine months of this financial year have been rewarding in more than one ways. Our focus on manufacturing gives us the clarity of purpose. Stable, consistent supply and quality has helped the company create a long sustainable relationship with our clients, which is not easy to establish. The backward integration plant is a milestone for the company, a very strong asset and it implies that we will be healthy and profitable even in a buyers market. We continue to learn, hustle and respond with discipline & integrity to build resilient processes, said Ch. Siddartha, JMD, Vishnu Chemicals

Vishnu Chemicals is a pure play manufacturer of high performance niche speciality chemicals. Our products touch and enhance the lives of millions directly or indirectly through applications in pigments and dyes, plating, pharmaceuticals, construction, glass, wood preservatives, automobiles and more. The company derives core competence from its four world class manufacturing facilities.

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