Himadri Speciality Chemical triples Q4 profit after tax; rewards shareholders with dividend

Additionally, the net debt to EBITDA ratio for the company was 0.49x in March 2022, which is a significant improvement from 4.57x in March 2021. 

The start to the earning season was not a pleasant one as IT bellwether TCS and Infosys disappointed the street with their earnings, however, as the earning season picked its pace, some of the bright spots have emerged especially in the Smallcap segment. 

One such stock which we are going to talk about is from the Small-Cap segment and the company is a speciality chemical company primarily engaged in the manufacturing of carbon materials and chemicals. The name is Himadri Speciality Chemical. 

On Friday, post market hours, the company announces its Q4FY23 earnings wherein net standalone revenue from operations grew by 23.40 per cent on YoY basis to Rs 1028.90 crore. EBITDA witnessed a growth of 122.46 per cent YoY to Rs 121.55 crore. The company reported a threefold jump in its standalone profit after tax to Rs 76.72 crore. The company posted a profit after tax of Rs 21.21 crore in the corresponding period a year ago. 

Himadri Speciality Chemical Ltd has a capital-disciplined balance sheet with a significant reduction in long-term debt. The net debt of the company as of March 2022 was Rs 93 crore, which has decreased from Rs 132 crore in March 2021. The net working capital days for the company were 69 in March 2022, compared to 62 in March 2021. Additionally, the net debt to EBITDA ratio for the company was 0.49x in March 2022, which is a significant improvement from 4.57x in March 2021. 

Interestingly, the board of the company has recommended a final dividend of Rs 0.25 per equity share of Rs 1 each i.e., 25 per cent of the face value of equity share for the financial year 2022-23. 

Commenting on the results and performance, Anurag Choudhary, CMD of Himadri Speciality Chemical Ltd said: “We are pleased to report robust performance with highest ever revenue in FY23. At Himadri, we are delighted to remain at the forefront of massive transition towards a green economy, aligned with India’s vision of becoming a self-reliant nation (Atmanirbhar Bharat) and reducing carbon emission.”