Sadhana Nitro Chem, a leading manufacturer of intermediate speciality chemicals, has commissioned new plants. The company has said that the new plants will eventually lead to increased profitability.

“At present, the revenue generated from these plants does not fully offset these costs. However, as we ramp up volumes, we anticipate that these costs will be absorbed more effectively, paving the way for enhanced profitability, evident from our EBIDTA numbers which are at an encouraging 20 per cent,” Sadhana Nitro Chem has said in a stock exchange filing.

The company manufactures downstream derivatives of nitrobenzene with applications across aerospace, pharmaceutical and agriculture, optical brightening agents, plastic additives, special fibres, epoxy resin hardeners, dyes and performance chemicals. The company is on a high-growth trajectory with guidance of enhanced profitability from new plant commercialisation.

Earlier, the company had announced its earnings for Q1FY24, with 40 per cent revenue growth YoY, despite Q1 being impacted by seasonal influences. The company’s decisive expansion in ODB2 and PAP resulted in a noteworthy revenue surge. This remarkable increase predominantly stemmed from heightened volumes at the company’s PAP and ODB2 plants, the company has said.