Anupam Rasayan share price slips 3% on weak Q2 show; profit tanks 37% YoY

Shares of specialty chemicals company Anupam Rasayan India fell 2.87 per cent to Rs 713.45 on the BSE during intra-day trade on Monday, November 18, 2024. The fall in stock price follows the company's announcement of its quarterly earnings for the second quarter of the current fiscal year. Anupam Rasayan announced on November 14 that its profit after tax (PAT) dropped 37.16 per cent year-on-year to Rs 30.6 crore in Q2FY25 compared to Rs 48.7 crore in Q2FY24.

 

The company's total revenue for Q2FY25 was Rs 295.9 crore, down 25.22 per cent year-on-year from Rs 395.6 crore reported in Q2FY24. .

 

Anupam Rasayan's Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) (including other income) was Rs 82.4 crore in Q2FY25, down 25.69 per cent year-on-year compared to Rs 110.9 crore in Q2FY24, translating into a 28 per cent Ebitda margin in Q2FY25.

 

Speaking on the Q2FY25 results, Anand Desai, managing director of Anupam Rasayan, commented, "In Q2FY25, we were nearing the end of a demand slump in the Agro segment, and we are now seeing a good recovery. The Pharma and Polymer segments, meanwhile, have been showing robust growth, fueled by the launch of over 17 new molecules in FY24 and 3 additional molecules in H1FY25. As these products gain traction, we expect their contribution to grow. Additionally, the planned launch of more than 3 new molecules in the coming months should further accelerate growth in these areas."

 

"We anticipate revenue to normalize as volumes increase in the latter half of the year. With the new capacity, scaling of recently launched fluorinated molecules, and signed LOIs and contracts, we are optimistic about strong growth over the medium term," he added.

 

Incorporated in 1984, Anupam Rasayan India is engaged in the custom synthesis (CSM) and manufacturing of specialty chemicals in India. The company caters to a diverse base of Indian and global customers. It currently manufactures products for over 75 domestic and international customers, including 31 multinational companies. The company operates via its six manufacturing facilities in Gujarat, India, with four facilities located at Sachin, Surat, and two located at Jhagadia, Bharuch, with an aggregate installed capacity of about 27,000 MT as of March 31, 2024.

 

As of November 18, 2024, Anupam Rasayan has a market capitalisation of Rs 7,838.85 crore on the BSE and is a constituent of the BSE 500 index. Specialty Chemicals shares have a 52-week range of Rs 1,107.45 - 672.75 on the BSE.  Anupam Rasayan shares have dropped 33.43 per cent year-to-date. At around 2:46 PM on Monday, Anupam Rasayan shares were quoted trading at Rs 713.45, down 2.84 per cent from their previous close of Rs 734.55 on the BSE. Combined, nearly 0.12 million shares of Anupam Rasayan, worth around Rs 22 crore, exchanged hands on the NSE and BSE on Monday.

 

Meanwhile, the benchmark equity indices were trading lower on Monday, weighed down by weak global cues. The BSE Sensex was quoted at 77,305.54, down 274.77 points or 0.35 per cent from its previous close. Similarly, the NSE Nifty50 traded at 23,449.65, down 83.05 points or 0.35 per cent.