Seya Industries spikes 4 per cent on export contract

Seya Industries has entered into a long-term export contract for supply of one of its key products to a major Chinese Specialty Chemical Company. Following this development, the stock jumped 4 per cent intraday on the BSE.

The supply contract is initially for a period of one year and of approximately US$ 5 million. The contract is extendable for a period of three years with total value of upto US$ 20 million.

Seya Industries is engaged in the business of manufacturing of pigment, pharmaceuticals, agrochemicals and rubber chemicals intermediates. The company’s products mainly cater to print ink industry, followed by personal care & hair dye, pharma, dye intermediaries and agro chemicals.

As Chinese government continues to shut down polluting plants that has led to supply shortage of necessary chemicals in the overall industry. This creates an enormous opportunity for the Indian players as global players are looking to shift their production facilities from China to countries like India. Seya Industries is well-positioned to grab this opportunity.

In the recent quarter Q1FY20, the company’s revenue came in at Rs. 98.17 crore as against Rs. 105.12 crore in the corresponding quarter last year, registering 6.6 per cent yoy decline. EBITDA for the quarter grew by 7.2 per cent yoy to Rs. 36.74 crore as against Rs. 34.26 crore in the corresponding quarter last year, with a corresponding margin expansion of 483 bps. EBITDA margin for the quarter stood at 37.4 per cent.PAT for the quarter came in at Rs. 23.35 crore as against Rs. 18.33 crore in the corresponding quarter last year, yoy increase of 27.4 per cent.

On Monday, the stock of Seya industries opened at Rs. 375 and gained nearly 4 per cent and made an intraday high of Rs. 389.50 on the BSE.