DMCC Speciality Chemicals Limited, India’s leading Sulphur chemistry solutions manufacturer reported its consolidated financial performance for Q1FY25.

The company has reported revenue from operations flate at Rs. 85.32 crore, EBITDA as Rs. 9.05 crore relecting YoY growth of 24 percent and PAT of Rs. 1.37 crore with a YOY growth of 56 per cent Q1 FY25.

According to the company, export revenues stood at 20 per cent and domestic at 80 per cent in Q1 FY25. Speciality chemicals contributed 48 per cent in overall revenue and sale of bulk chemicals at 52 per cent.

Commenting on the Q1 FY25 performance, Bimal Goculdas, Managing Director and CEO, said: “I am pleased to report on our performance for Q1FY25. Despite a challenging operating environment, we maintained a stable topline and achieved a slight improvement in profitability compared to the previous quarter, driven by increased demand in our domestic business. It is important to note that while our profitability appears subdued on a quarter-over-quarter basis, the previous quarter's figures were bolstered by profits from the sale of shares recorded as other income. Operationally, we have performed better than the previous quarter.

“During the quarter, we recorded higher volumes in both bulk and speciality chemicals within the domestic market. However, this positive performance was tempered by a significant 30% decline in export demand compared to the last quarter. We anticipate that export demand will normalise over the coming quarters.

“Elevated freight and power costs continued to pose challenges, impacting our overall cost structure. In response to rising power costs, we are evaluating an offsite solar plant with a capacity of 3-4 MW to reduce long-term power expenses.

“Our Boron business has shown robust performance, with strong traction and demand for our products. The export segment's challenges led to a higher volume contribution from bulk chemicals, which impacted our consolidated profitability margins. However, we are witnessing a recovery in demand across the chemical industry, with improving realisations that we expect to reflect positively in our business in the coming quarters.

“Over recent years, we have made significant investments in expanding capacities, launching new products, and enhancing management capabilities. While these investments have temporarily impacted profitability, we are confident that as the demand scenario stabilises, we will swiftly ramp up capacity utilisation and drive profitable growth.”