Sumitomo Chemical India Limited (SCIL) has reported a 34 per cent in its net profit to Rs. 193 crore in Q2 FY25 as compared to Rs. 143 crore in Q2 FY24.

The company posted a revenue of Rs 988 crore in Q2 FY25 as compared to Rs. 904 crore in Q2 FY24, reflecting a growth of 9 per cent.

EBITDA was Rs. 245 crore with a YoY growth of 31% in Q2 FY25. 

“Despite lower volume growth, our emphasis was on maintaining profitability. We adjusted our approach by closely monitoring and optimizing both purchase and sales prices to protect margins. This strategic focus on margins over volumes ensured the company's performance remained stable,” SCIL said in its presentation.

During the quarter, Gross profit margin improved by 421 basis points (bps) YoY to 42.6%, driven by several factors such as focus on high-margin new products, normalization of export markets and effective cost management on the procurement side. Employee and operating expenses remained stable, ensuring the increased gross profit translated directly into higher profitability.

SCIL also witnessed normalization of export demand compared to last year (wherein excess inventories had constrained sales) - with robust sales rebounds across key geographies such as Japan and South America.

At the same time, SCIL continued to maintain a strong emphasis on collection discipline, sales return minimization, and liquidation tracking to maintain robust financial health and efficient operations.

The emphasized on "Every Day Farmer Day" campaigns to engage with farmers and create awareness around product offerings. The company’s new offerings (such as Meshi, Ormie, and Portion) contributed to a 65% growth compared to the same period last year, reflecting successful adoption

The company expects a better performance in coming seasons. “Above normal monsoon also means that residual moisture in the soil is better than in previous years. Also, the water levels in the 155 reservoirs across the country (filled to 87% of the capacity), are higher than last year’s level as well as the normal range. Both these factors are likely to significantly aid in the planting as also encourage farmers to go for higher acreage for the forthcoming Rabi season - potentially driving agrochemical consumption,” the presentation reads.