Himadri Speciality Chemical Ltd Posts 40% Profit Surge, Plans Major Expansion

Himadri Speciality Chemical Ltd (HSCL) reported a 40% year-on-year increase in net profit to Rs 123 crore in Q1FY'25. The EBITDA grew by 43% to Rs 188 crore, and sales rose by 26% to Rs 1200 crore. The company plans to expand in various sectors, including speciality carbon black.

Himadri Speciality Chemical Ltd (HSCL) on Tuesday reported a remarkable 40 per cent year-on-year jump in net profit, reaching Rs 123 crore for the first quarter of the ongoing fiscal year. This performance is supported by volume and margin growth.

The company's EBITDA soared by 43 per cent to Rs 188 crore, compared to Rs 131 crore in the previous fiscal year's corresponding quarter. Sales for the quarter also rose by 26 per cent, hitting Rs 1200 crore.

'We have posted robust growth in sales and profitability driven by our value-added speciality products in both coal tar, speciality oils, and speciality carbon black. The traction will continue due to various factors,' Anurag Choudhary, CMD & CEO of Himadri Speciality, stated.

Choudhary highlighted that Himadri, holding a 65 per cent market share in coal tar pitch, faces no competitive threat from Chinese companies and will begin exporting liquid coal tar pitch to the Middle East at competitive prices.

Himadri Speciality Chemical has also achieved a significant milestone by becoming debt-free and holding a positive net cash balance of Rs 56 crore for the reviewed quarter. The company credits its long-term focus on speciality and high-value-added products for consistent profitability.

The company is also gearing up for a brownfield expansion of its specialty carbon black production in Hooghly district, West Bengal, with an investment of Rs 220 crore, targeting growth in new sectors such as tyres and Lithium Ion battery materials.

(With inputs from agencies.)