Fine Organic Industries Limited, a leading manufacturer of specialty additives in India with more than 510 different products and grades used in food, feeds, polymer, cosmetics, paint, ink, coatings, etc. has announced its consolidated unaudited financial results for the Quarter and half year ended 30th September 2024.   

The company posted revenue from Operations at Rs. 595.8 crore in Q2 FY25  compared to Rs. 540.5 crore in Q2 FY24, reflecting a growth of 10.2 per cent. PAT in Q2 FY25 was at Rs. 117.4 crore compared to Rs. 103.4 crore in Q2 FY4. EBITDA was Rs. 150.6 crore in Q2 FY25 compared to Rs. 131.1 crore in Q2 FY24.

For Half Year ended September 30, 2024, Fine Organic Industries posted Revenue from Operations at Rs. 1,145.5 crore compared to Rs. 1,087.7 crore, representing a growth of 5.3 per cent. PAT stood at Rs. 230.7 crore compared to Rs. 203.1 crore in H1 FY24.

Q2 & H1FY25 Performance Highlights:

Revenue Composition:

In the first half of FY25, domestic and export sales accounted for 42% and 58% of total revenue, respectively. In Q2 FY25, the split is with 39% of revenue from domestic sales and 61% from exports, reflecting the strong demand from global markets.

Demand and Raw material Prices:

Demand has remained steady across both domestic and international markets. However, Q2 saw a sharp rise in prices for certain vegetable oils, which impacted input costs. 

Operational Cost:

Freight costs increased during both Q2 and H1FY25, leading to higher logistics expenses and extended lead times, which affected operational efficiency. Additionally, rising power and fuel costs contributed to increased overall expenses. Despite these challenges, all plants are currently operating at optimal capacity, with only the Patalganga plant still able to ramp up production if required.

Strategic Expansion at JNPA SEZ:

On October 29, 2024, the company signed a 60‐year lease agreement for land at Jawaharlal Nehru Port Authority (JNPA) for its wholly‐owned subsidiary, Fine Organic Industries (SEZ) Private Limited. This facility, once operational, will manufacture products similar to the company’s current portfolio, primarily targeting international markets due to its Special Economic Zone (SEZ) status. The company has applied for environmental clearance (EC) and expects to receive approvals in the coming months.

The project is expected to entail a capital expenditure of approximately Rs. 750 crores, funded through a combination of debt and internal accruals. Commercial production at this new facility is slated to begin by FY27, strengthening the company's footprint in global markets.