Chemical
Vinati Organics sales, profits down in Q2
Company's net profit also dropped sharply by 43.61% YoY and stood at Rs. 62.04 crore in Q2
- By ICN Bureau
| November 16, 2020
India's leading specialty chemical manufacturer, Vinati Organics Ltd has recently reported a drop in its earnings as well as profits during second quarter of the current fiscal. Its operating profit fell around 20 percent and margins too contracted.
Net Sales at Rs 219.44 crore in Q2 which was down by 10.45% YoY from Rs. 245.06 crore in same period last year. Oil and gas segment has been down which accounts for about 10-15 percent of the company’s overall revenue which eventually led to contraction in revenues along with higher operational costs as per the company.
Company's net profit also dropped sharply by 43.61% YoY and stood at Rs. 62.04 crore in Q2 versus Rs. 110.01 crore last year.
EBITDA stands at Rs. 85.52 crore in September 2020 down 23% YoY from Rs. 111.06 crore in September 2019.
In October, a new subsidiary named Veeral Organics Private Limited was formed which has 99% shareholding from Vinati Organics Ltd and the new company will focus on manufacturing specialty chemicals and organic intermediaries.
Recently Vinati Organics also announced a capital expenditure of Rs. 150 crore to produce four new specialty chemical products for agrochemicals, dyes and plastic additives industries, and expand its para-tert-butylbenzoic acid capacity. The company expects to grow its revenue by manufacturing niche value added products in future.
The company has two plants, both situated in Maharashtra at Mahad (Raigad) and Lote Parashuram (Ratnagiri). The company is a world leader in two main products - Isobutyl Benzene (IBB) and 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS). The company is present in over 22 countries worldwide and exports its products to customers across the US, Europe and Asia.
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