Himadri Speciality Chemical shares extended gains after the company's consolidated net profit doubled year-on-year to Rs 86 crore in the April to June quarter.
The stock was up 1.24 percent to Rs 146.35 at 9:17 am on July 19. Following the announcement of the results on July 18, the stock had already gained around 2 percent.
Despite the strong growth in the bottom line, the company's consolidated revenue from operations decreased by 9 percent to Rs 950 crore compared to the same period the previous year. This decline in revenue was primarily driven by the carbon materials and chemical segment, which fell by 9.2 percent to Rs 945 crore in Q1FY24 compared to the same period last year.
In the April to June quarter, the Earnings Before Income Tax Depreciation and Amortization (EBITDA) or operating profit increased by 54 percent year-on-year to Rs 131 crore.
Recently, Himadri Speciality Chemical made an investment in Sicona Battery Technologies, a specialist in high-capacity silicon anode technology for lithium-ion batteries. This investment aims to support electric mobility and renewable energy storage, although the exact purpose of the acquisition remains unclear.
On July 18, the company announced its plans to acquire a 100 percent stake or 16,250 shares in Combe Projects Private Limited. The acquisition is expected to be completed within 60 days of signing the special purpose agreement.
Himadri Speciality Chemical is a global specialty chemical conglomerate that specializes in manufacturing lithium-ion battery anode material in India. The stock has risen 44 percent so far in 2023.
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