Rossari Biotech gained 0.88% to Rs 803.70 on BSE after the company reported 9.4% increase in consolidated net profit to Rs 15.49 crore in Q1 June 2020 as against Rs 14.16 crore in Q1 June 2019.
Consolidated revenue from operations stood at Rs 109.47 crore in Q1 June 2020, a 14.3% Rs 127.8 crore in Q1 June 2019. As the country moved to the un-lockdown phase, the company witnessed encouraging pick-up in demand and consumption across businesses from the last week of May continuing into the month of June. The result was announced after market hours on Friday, 21 August 2020.Consolidated EBITDA grew by 6.6% year on year to Rs 23.7 crore in quarter ending June 2020 from Rs 22.3 crore in quarter ending June 2019. EBITDA margin stood at 21.7% in Q1 June 2020, rising by 423 basis points from 17.5% in Q1 June 2019. Improvement in EBITDA margins was primarily on account of higher realisations witnessed in certain product categories and is transitory in nature. Going forward, the company expects to report normalized EBITDA margins on an annual basis.
Commenting on the performance for the quarter, in a joint statement, Executive Chairman, Edward Menezes & MD, Sunil Chari, said, "Despite challenging macro-economic conditions, our offering witnessed strong reception from the investor community. The quarter gone by, started amidst a tough operating environment with the spread of the COVID-19 pandemic leading to multiple lockdowns across domestic markets. While we delivered strong performance in our HPPC business led by accelerated momentum in hygiene products and anti-viral portfolio sales, broader operating constraints and slowdown. Demand in the months of April and May, impacted performance of our TSC and AHN businesses during the quarter. However, as the country moved to the unlock phase, we started seeing a healthy uptick in consumption and demand, which further continued in June. On the whole, we have reported a resilient performance in Q1 FY2021, with revenues coming in at Rs. 109.5 crore and EBITDA at Rs. 23.7 crore. Notable margin improvement during the quarter was primarily on account of higher realisations witnessed in certain product categories and is transitory in nature. So, going forward, we expect to report normalized margins on an annual basis. With a healthy balance sheet and adequate manufacturing capacity, we are confident in our ability to deliver a sustainable and healthy growth trajectory, going forward."
Rossari Biotech announced its first ever quarterly result after listing on bourses on 23 July 2020. The stock debuted at Rs 670, a premium of 57.65% to the initial public offer (IPO) price of Rs 425 per share.
Rossari Biotech is a specialty chemicals manufacturing company.
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