Lords Chloro Alkali Limited, amongst India’s leading producers of wide range of chemicals, has announced its unaudited financial results for the quarter and half year ended September 30, 2024.

In Q2 FY25, Total Income stood at Rs. 60.86 crore as against Rs. 48.83 crore in Q2 FY24, a growth of 24.6% on a year on year basis, driven by a higher sales volume of Caustic Soda lye and the introduction of a new product, Chlorinated paraffin wax. EBITDA (including other income) for the quarter is Rs. 3.70 crore as against loss of Rs. 0.16 crore in Q2 FY24, mainly on account of improved volumes and higher price of caustic soda compared to previous year. EBITDA Margin for the quarter stood at 6.08%. Q2 FY25 profit stands at Rs. 0.36 crore against a loss of Rs. 1.22 crore in Q2 FY24.

For H1 FY25, Total Income stood at Rs. 126.39 crore as against Rs. 102.51 crore in H1 FY24, a year on year growth of 23.3%, mainly on account of increase in volumes and price of Caustic Soda lye. EBITDA including other income for the first half is Rs. 8.73 crore as against Rs. 1.92 crore in H1 FY24, a YoY growth of 355.2%. This growth is attributed to rise in sales values and improved realizations and also the introduction of a new product i.e. Chlorinated paraffin wax (CPW).  EBITDA Margin for the first half stood at 6.91%. H1 FY25 Profit stands at Rs. 2.31 crore against a Loss of Rs. 1.54 crore in H1 FY24.

Commenting on the result, Ajay Virmani, Managing Director, Lords Chloro Alkali Ltd, said: “I am pleased to report our operational performance for the quarter and first half of the year has met our expectation. Despite the prevailing challenges in the industry, particularly with lower realizations in caustic soda, our EBITDA has demonstrated resilience. This is largely due to our disciplined approach to cost control, resource optimization and an ongoing focus on enhancing operational efficiencies, which has contributed to stabilizing margins.

“Looking ahead, we anticipate that the realizations for caustic soda lye will be better in the second half of this year, which will positively impact both revenues and margins. Our proactive management and operational expertise has already helped mitigate some of the adverse effects of market fluctuations.

“We remain committed to further enhancing the profitability through continuous operational improvements and by pursuing strategic opportunities that are aligned with our long-term growth objectives. With our strong operational framework and proactive approach, I am Lords Chloro Alkali is well positioned to navigate the evolving market dynamics and continue delivering sustainable value to our stakeholders.”

Commenting on the recent development, Madhav Dhir, Executive Director, Lords Chloro Alkali Ltd. said: “We are happy to share key developments that will significantly enhance our operational performance and financial outcomes going ahead. As part of our ongoing expansion strategy, we are working on increasing our production capacity for Caustic Soda Lye from 210 TPD to 300 TPD, and for Chlorinated Paraffin Wax (CPW) from 20 TPD to 50 TPD which will be completed by end of this calendar year. These capacity expansions shall further add to the revenues and profitability.

“In addition to these production enhancements, we are pleased to announce the successful commissioning of our 16 MW solar power plant at the end of October 2024. This renewable energy initiative not only aligns with our sustainability goals but also optimizes energy costs, further strengthening our long-term profitability and operational resilience.“