Q1 2025 Sudarshan Chemical Industries Ltd Earnings Call Transcript
Key Points
- Sudarshan Chemical Industries Ltd (BOM:506655) reported a 4% year-on-year increase in total income from operations, reaching INR634 crores.
- EBITDA for the quarter increased by 15% year-on-year to INR81 crores, with an EBITDA margin improvement from 11.5% to 12.7%.
- The company's long-term external rating was upgraded by India Ratings from AA- stable to AA stable, reflecting improved financial performance and healthy financial ratios.
- Sudarshan Chemical Industries Ltd (BOM:506655) achieved an EcoVadis Gold rating, placing it in the top 3 percentile of companies in the chemical sector.
- The company reported a significant 41% year-on-year increase in EBITDA for its pigment business, with EBITDA margins improving from 11.9% to 15.3%.
- Despite the gross margin improvement, the EBITDA margin remained flat sequentially due to increased costs, including exhibition expenses and export-related costs.
- Rieco, a subsidiary of Sudarshan Chemical Industries Ltd (BOM:506655), faced challenges with losses at the EBIT level and a decline in revenues year-on-year.
- The working capital cycle increased to 73 days in Q1 FY25 from 66 days in Q4 FY24, primarily due to a planned increase in raw material inventory.
- The company did not provide specific volume growth figures for the quarter, leaving some uncertainty about the underlying performance.
- There are concerns about the sustainability of the Heubach opportunity, as the situation could change if the company is acquired or resolves its issues.
Ladies and gentlemen, good day, and welcome to the Sudarshan Chemicals Q1 FY25 earnings conference call hosted by HDFC Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nilesh Ghuge from HDFC Securities. Thank you, and over to you, sir.
Thank you, Steve. Good morning, everyone, and welcome to Sudarshan Chemical Industries Limited Q1 FY25 post result earnings call. The management team from Sudarshan Chemical Industries Limited will be represented by Rajesh Rathi, Managing Director; Mr. Nilkanth Natu, Chief Financial Officer; Amey Athalye, General Manager, Finance. We will start the discussion with a brief management overview on the earnings performance, followed by an interactive Q&A session.
Over to you, sir.
Thank you, Nilesh and HDFC Securities, for hosting our earnings call for the quarter one FY25.
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