Rossari Biotech slips after Q2 PAT declines 8% YoY; EBITDA margin remains stable

Rossari Biotech declined by 2.85% to Rs 862.80 after the company reported 8.8% YoY fall in consolidated net profit to Rs 23.92 crore in Q2 FY23.

The company had reported a net profit of Rs 26.23 crore in Q2 FY22.

Revenue from operations increased by 10.6% to Rs 425.44 crore in Q2 FY23 versus Rs 384.52 crore in Q2 FY22.

Total Expense increased by 11.9% to Rs 392.75 crore in Q2 FY23 from Rs 351.11 crore in Q2 FY22, due to higher cost of material (up 15.4% YoY), higher other expenses (up 72.5% YoY) and higher employee expenses (up 72.9% YoY).

 

EBITDA fell by 1.9% YoY to Rs 56.6 crore in Q2 FY23 from Rs 57.7 crore in same quarter last fiscal. EBITDA margin remained stable at 13.3%.

Profit before tax fell by 6.1% to Rs 33.62 crore in Q2 FY23 as compared to Rs 35.81 crore in Q2 FY22.

Commenting on the performance, in a joint statement, Edward Menezes, promoter & executive chairman, and Sunil Chari, promoter & managing director, said: We have reported a steady performance in our key business segments during the quarter amidst a volatile operating environment.

On the raw material front we are now witnessing some price stability. This should help maintain our margins through the second half of the year.

During the quarter, we successfully acquired an additional 15% stake in Unitop and 8% in Tristar, taking our total holding to 80% and 84% respectively. Since the acquisition, both companies have added tremendous value to Rossari, and we are very pleased with the acquisitions and the seamless integration executed by our team.

To maintain our market position as a top provider of intelligent and sustainable solutions, our long-term focus will continue to be on growing our wallet share among our current client base while expanding out to emerging customer segments.

Rossari Biotech is a speciality-chemicals manufacturer providing intelligent and sustainable solutions for customers across industries. The company offers tailor-made solutions for home, personal care and performance chemicals (HPPC), textile speciality chemicals and animal health and nutrition (AHN).

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