Shares of Tanfac Industries hit a new high of Rs 3,794; gaining 6 per cent on the BSE in Friday’s intra-day trade, and extending its past two day's rally on expectations of strong earnings going forward. In three days, the stock price of the smallcap commodity Chemicals Company has surged 19 per cent. In four months, it has been more than doubled, or zoomed 101 per cent, from the level of Rs 1,890 on October 8, 2024.
In seven days, it soared 29 per cent after the company reported a robust 245 per cent year-on-year (Y-o-Y) jump in profit after tax (PAT) at Rs 34.80 crore in the December quarter (Q3FY25). The company had posted a PAT of Rs 10.08 crore in the year ago quarter.
Total revenue more than doubled to Rs 178.39 crore, from Rs 88.73 crore in Q3FY24. Earnings before interest, tax, depreciation and amortisation (Ebitda) were up by 62 per cent YoY to Rs 95 crore, against Rs 595 crore in Q3FY24. Ebitda margins improved to 28.32 per cent from 17.52 per cent in the year-ago quarter and 24.85 per cent in the previous quarter.
Tanfac Industries is a joint sector company promoted by Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation (TIDCO) and is amongst the leading producers of Hydrofluoric Acid (HA) and its derivatives. The company is engaged in the manufacture of Anhydrous Hydrofluoric acid, Sulphuric Acid, Aluminium Fluoride, Potassium Fluoride, Potassium Bifluoride, etc.
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The company announced the successful commissioning of its new HF expansion plant, which achieved 100 per cent of its rated capacity within just 10 days of operation. This milestone, coupled with the ongoing growth in the HF market during Q3 FY25, has enabled Tanfac to deliver record performance in both revenues and net profit for the quarter and for the nine months ending December 31, 2024.
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With the optimisation of the new plant and sustained demand for HF, the management anticipates continued strong performance in the remaining quarter of the financial year.
Looking ahead, Tanfac is well-positioned to capitalise on growth opportunities in the chemical sector. The company plans to expand its production capacity and diversify its product offerings to meet the increasing demand for speciality chemicals. Strategic partnerships, such as the recent agreement with a leading Japanese firm for refrigerant gas supply, will further strengthen Tanfac’s market position, the company said in its FY24 annual report.
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With a continued focus on sustainability and innovation, Tanfac aims to enhance its competitive edge and deliver long-term value to stakeholders. As the global and Indian economies recover, Tanfac’s robust operational framework and strategic initiatives will enable it to achieve its growth objectives and navigate the evolving market landscape effectively, the company said.