Bodal Chemical to acquire Turkey based company

Bodal Chemical on Wednesday informed the bourses that it is planning to acquire 80 per cent stake in Turkey-based company called Sener Bova Kimya Tekstil Sanayi Ve Ticaret Ltd. The company is involved in marketing, purchase and sale of various dyestuff and other chemicals in Turkey and the surrounding countries.

For FY18, the company clocked revenue of TRY 29.318 million. This acquisition is in-line with Bodal’s aim to strengthen its global marketing capabilities and increase profitability through an increase in B2C segment. The deal is likely to get completed in five months. The company will pay Rs. 32 crore in cash for 80 per cent stake.

Recently, the company reported its fourth-quarter numbers for FY19 where it reported 17.4 per cent yoy increase in consolidated revenue at Rs. 344.26 crore. In terms of full-year numbers for FY19, the revenue jumped by 25 per cent to Rs. 1,423.5 crore while EBITDA grew by 21 per cent to 236.14 crore. Net profit stood at Rs. 142.18 crore, up 14 per cent yoy.

On Thursday’s volatile trading session, the stock of Bodal Chemical ended on a negative note at Rs. 110.95 apiece, down by around 1.94 per cent from its previous close.