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Vishnu Chemicals Limited Income Grows in Q2FY24

by PRNW Agency
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Other Highlights Debt to equity at 0.5 timesDeleveraged and stronger balance sheetStable Gross Margin with marginal increase in top lineHYDERABAD, India, Nov. 9, 2023 /PRNewswire/ — Vishnu Chemicals Limited (BSE: 516072), (NSE: VISHNU), leading manufacturer of high-performance specialty chemicals, has reported its unaudited financial results for the quarter and half year ended 30th September 2023. Consolidated Highlights: Consolidated total income increased by 3% sequentially, from Rs 303.0 cr in Q1FY24 to Rs 310.9 cr in Q2FY24.Consolidated gross profit remained same sequentially at Rs 139.1 cr. Impact on consolidated PAT was mainly due to increase in depreciation by Rs 1.8 cr and increase in fixed & conversion costs by Rs 5.0 cr during the quarter.Stable gross margin trend continues with absolute consolidated gross profit in line with Q1FY24.Encouraging demand from domestic market led to increase in domestic sales by 5.8% QoQ.Deleveraged and stronger consolidated balance sheet:Reduced D/E consistently since last 5 years.Debt to equity at 0.5xCurrent ratio at 1.6xReceivable days at 49.Promoter pledge as a % of total share capital stands at 2.6% as on 30 Sep 2023 compared to 27.1% as on 31 March 2023.Management Comments Mr. Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited said, “We have built new capacities in our business and we are well positioned heading into 2024. As we continue to manage the immediate realities of the world, the leadership team at Vishnu Chemicals remains fully committed to our enterprise growth strategy and driving long-term value for shareholders.” Mr. Ch. Siddartha, JMD, Vishnu Chemicals Limited said, “Q2FY24 results were a combination of our product mix and recently completed projects, as well as a slight moderation in raw material costs that still remain at historically elevated levels. Our balance sheet and liquidity remains strong, making us well positioned to grow and capitalize thoughtfully.” Highlights of Chromium Chemistry:Demand side remains robust with encouraging volume off take of finished goods during the quarter from both domestic and export markets.Standalone domestic and exports sales (value) continue their growth trend, growing by 6% and 7% QoQ.Fundamentally stronger standalone balance sheet with D/E at 0.4 times, current ratio at 1.7 and interest coverage ratio of 6.2 times.Receivable days of 55, in an overall tough environment, is a reflection of robust demand.Chrome Ore: Chrome ore prices reached their highest levels in Q2FY24 leading to moderate increase in raw material expenses.Secure Supply Chain: The board has approved to acquire a chrome ore reserve and a processing plant as a long-term strategy. This vertical integration will ensure a stable and consistent supply of raw materials which is critical for our manufacturing operations that rely on chrome ore as a key input, as it minimizes the risk of supply disruptions or price fluctuations in the open market.Highlights of Barium Chemistry:Achieved break even in newly acquired baryte beneficiation plant in the very first quarter of operations.Q2FY24 had higher fixed costs due to integration of newly commissioned plant and stabilisation of baryte beneficiation facility acquired in Q2FY24.The newly commissioned plant of precipitated barium sulphate has an installed capacity of 30,000 TPA and is expected to reach over 50% utilisation in H2FY24.The output has received incredible reception from the organised customers in Indian and overseas markets, largely in the powder coating, automotive paints and battery applications. The plant and process is built to meet the stringent quality requirements of multinational paint companies globally.We are encouraged by the demand for newly launched precipitated barium sulphate but we are being impacted by softer construction activity, as well as customer order patterns for barium carbonate, primarily in the Europe and USA.Global headwinds persist & expect to continue through this calendar year. The company has a strong foundation in place to serve its customers and we are focused on improving our profitability.About Vishnu Chemicals Limited Vishnu Chemicals Limited epitomises manufacturing of high-performance speciality chemicals, with an intelligent symphony of forward and backward integration to produce products that are focused on diverse needs and aspirations of its customers across domestic and international markets. View original content:https://www.prnewswire.com/in/news-releases/vishnu-chemicals-limited-income-grows-in-q2fy24-301983265.html

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