EconomyResults
Himadri's quarterly profit rises 31% as revenue jumps 58%
The Kolkata-based maker of carbon black and battery materials reported a September-quarter profit of ₹231 crore on Sunday, and said its half-year profit grew 29% to ₹460 crore.
Key points
- Profit for July-September rose 31% to ₹231 crore from ₹176 crore.
- Revenue from operations grew about 58% to ₹1,691 crore in the quarter.
- Its battery arm Sicona has won AUD 45 million from Australia's renewable energy agency.
Himadri Speciality Chemical, which makes carbon black, coal tar pitch and materials for electric-vehicle batteries, said on Sunday that its profit rose 31% in the September quarter as sales of its speciality products grew.
Consolidated profit after tax for July-September came to ₹231 crore, up from ₹176 crore a year earlier. Revenue from operations rose about 58% to ₹1,691 crore from ₹1,071 crore, and earnings before interest, tax, depreciation and amortisation (EBITDA) grew 27% to ₹303 crore.
Because operating profit grew more slowly than sales, the quarter’s operating margin narrowed to about 18% from about 22% a year earlier.
For the first half of the financial year, April to September, profit rose 29% to ₹460 crore on revenue of ₹3,123 crore, which was 43% higher. EBITDA for the half grew 30% to ₹616 crore.
“Our sustainable growth in profitability is driven by an optimised product mix,” said Anurag Choudhary, the company’s chairman, managing director and chief executive. He said the company’s focus “remains on sustaining the growth momentum, accelerating the commercialisation of advanced materials”.
The battery bet
Himadri has been spending to move beyond its traditional chemicals into materials for lithium-ion batteries. Its battery materials company, Sicona Battery Technologies, has completed the purchase of Advano, a US company, bringing in silicon-anode technology along with a pilot plant, research and cell-testing facilities in the United States. Sicona has also secured AUD 45 million from the Australian Renewable Energy Agency to commercialise its silicon-carbon anode technology.
The company has also invested in International Battery Company, a battery cell maker, and is developing carbon nanotubes, LFP cathode material and synthetic anode material.
Closer to its core business, Himadri now owns all of Birla Tyres, which has become a wholly owned subsidiary. The company presents the move as a step towards a tyre business that runs from carbon black, a key tyre ingredient, to finished products.
The results came on a Sunday, so investors will first trade on them when markets open on Monday.