Rossari Biotech Ltd Share Price – NSE  /  BSE

Chemicals, Small Cap

The Board of Rossari Biotech at its meeting held on 06 April 2024 has approved the incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates in Dubai Multi Commodities Centre (DMCC) with an estimate aggregate Capital outlay of over AED 0.40 million in tranches (approximately Rs. 9.08 Million).

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Profit before tax in Q3 FY24 stood at Rs 47.78 crore, registering a growth of 37.8% from Rs 34.67 crore recorded in the corresponding quarter previous year.

Total expenses rose 17.93% YoY to Rs 419.51 crore during the quarter. Cost of materials consumed stood at Rs 290.99 crore (up 16.64% YoY) while employee benefit expenses came in at Rs 26.04 crore (up 7.69% YoY) in Q3 FY24.

EBITDA was at Rs 63.7 crore in the December quarter, up 18% as against Rs 54.2 crore posted in Q3 FY23. EBITDA margin reduced to 13.7% in Q3 FY24 as compared to 13.9% registered in Q3 FY23.

Edward Menezes, promoter & executive chairman, and Sunil Chari, promoter & managing director, said, “Revenues and profits showed a significant YoY increase of 19% and 34%, respectively. This performance is primarily attributed to the healthy growth witnessed in our home, personal care & performance chemicals (HPPC) division. The division achieved a robust improvement of 31%, underpinning the efforts put in by our team to drive growth in a challenging operating environment. Despite a subdued performance from the textile specialty chemicals (TSC) due to the industry headwinds and animal health and nutrition (AHN) due to seasonal softness, we are optimistic about recovery in these divisions in the coming quarters.

This quarter, while revenues were marginally lower Q-o-Q, we were able to surpass our last quarter’s PAT, setting a new record. On a nine month basis also, our revenues have grown by 9% while PAT growth has been at a high of 23% Vs previous year.

Our growth strategy remains focused on expanding across all business divisions. Having historically seeded new verticals within our core chemistries, our aim in the coming years is to significantly scale up these ventures. We are particularly focused on areas like specialty surfactants, phenoxy series, institutional cleaning, performance chemicals etc. Our plan remains to tap into global markets with our existing and new products, spread into newer geographies and increase our wallet share with existing partners.

The emphasis on R&D remains a pivotal aspect of the Company’s growth and innovation strategy. Rossari's position as a premier solutions provider is fortified by its R&D capabilities, which enable us to meet evolving market needs and solidify our role as a sought-after partner for bespoke solutions in the specialty chemicals sector.

In the face of global challenges in the chemical industry, India is set to emerge as a major hub for chemical manufacturing. With our robust R&D framework, strong financial foundation, expanding manufacturing capacities, and diverse product portfolio, we see significant growth opportunities in both domestic and international markets for all our business verticals. Over the next few years, we are confident that this strategic positioning will lead to strong YoY growth, enabling us to create substantial value for all our stakeholders.”

Rossari Biotech is a specialty chemical manufacturer and offers tailor-made solutions for home, personal care and performance chemicals (HPPC), textile speciality chemicals and animal health and nutrition (AHN).

Shares of Rossari Biotech ended 4.05% higher at Rs 819 on Saturday, 20 January 2024.

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Net profit of Rossari Biotech rose 33.92% to Rs 34.39 crore in the quarter ended December 2023 as against Rs 25.68 crore during the previous quarter ended December 2022. Sales rose 19.14% to Rs 463.77 crore in the quarter ended December 2023 as against Rs 389.27 crore during the previous quarter ended December 2022.

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Rossari Biotech will hold a meeting of the Board of Directors of the Company on 20 January 2024.

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