Chemicals maker Epigral posts over 2-fold jump in Q1 profit; shares jump 11%

Revenue from operations during the quarter logged 43 per cent growth year-on-year at Rs 651 crore from Rs 455 crore in the June quarter of last year, it said.

Chemicals manufacturer Epigral on Wednesday said its profit after tax (PAT) jumped more than two-fold to Rs 86 crore in the June quarter over the same period last year aided by volume growth on account of higher capacity utilisation and commissioning of new projects.

The company had posted a net profit of Rs 32 crore in the first quarter of FY24, Epigral said in a statement.

Revenue from operations during the quarter logged 43 per cent growth year-on-year at Rs 651 crore from Rs 455 crore in the June quarter of last year, it said.

The company said volume during the reporting quarter grew 29 per cent year-on-year primarily owing to efficient utilisation of capacities and also volume from new projects commissioned.

Revenue contribution from derivatives in a specialty (chemicals) business in the June quarter of this fiscal rose sharply by 53 per cent from 37 per cent year-ago, Epigral said.

"Epigral witnessed the highest ever quarterly revenue of Rs 651 crore in the quarter under review. The company delivered volume growth of 29 per cent YoY. This growth is primarily attributed to efficient utilization of capacities and also volume from new projects commissioned," said Maulik Patel, Chairman and Managing Director of Epigral.

In early April this year, Epigral commissioned additional Chlorinated Polyvinyl Chloride (CPVC) capacity of 45,000 tons per annum, taking its total capacity to 75,000 TPA followed by commissioning of the CPVC compound facility last month.

The company said it is expecting the commissioning of its Chlorotoluenes Value Chain in the second quarter.

"Both these projects will drive growth for Epigral in FY2025 and FY2026. We are moving in line with our long term vision to become fully integrated complex catering to diversified industries and grow consistently to create value for our stakeholders," Patel added.

Shares of the company soared by 11.72 per cent to close at Rs 1642.65 on BSE.