 "Zuari Agro Chemicals")
On Thursday, shares of Tanfac Industries, an Indian speciality fluoride chemical manufacturer soared by 13.1 per cent at Rs 2,399 a piece intraday on the BSE. This came after the company signed an agreement with a Japanese specialty chemical firm.
The company revealed in an exchange filing that a leading Japanese specialty chemical company will supply refrigerant gas to it over the next 5 years. This the company said, could generate revenues worth Rs 675 crore, with the supply of the product scheduled to start from the second half of fiscal year 2025-26.
K. Sendhil Naathan, managing director of Tanfac Industries said that with this agreement, Tanfac strategically enters into the refrigerant gas segment, adding that the company continues to capture the growth and value in fluorination chemistry and enhance our product offerings.
“We will undergo a plant expansion at our Cuddalore facility to manufacture this product. This expansion, coupled with the signing of the agreement, we continue to get visibility over the significant growth in coming years," said Naathan.
In the January-March quarter of fiscal year 2023-24 (Q4FY24) Tanfac Industries reported a 13.91 per cent fall in revenue year-on-year, amounting to Rs 104.87 crore in. However, on a quarterly basis, the company saw a 18.19 per cent increase in revenue.
In terms of net profit, Tanfac Industries Ltd experienced a 43.39 per cent decline year-on-year, with net profits reaching Rs 12.67 crore in Q4FY24. On a quarterly basis, the company recorded a 25.69 per cent rise in net profits.
The net profit margin for Tanfac Industries Ltd fell by 34.24 per cent year-on-year to 12.08 per cent in Q4FY24. However, on a quarterly basis, the company achieved a 6.35 per cent increase in net profit margins.
At 11:35 AM; the stock of the company was trading 11.93 per cent higher at Rs 2374.45 per share. In comparison, the BSE Sensex rose marginally by 0.09 per cent.
