Tatva Chintan Pharma Chem Ltd has reported Consolidated financial results for the period ended June 30, 2023.

The company has reported total income of Rs. 115.37 crores during the period ended June 30, 2023 as compared to Rs. 125.35 crores during the period ended March 31, 2023. The company reported total income of Rs.90.27 crores during the period ended June 30, 2022.

The company has posted net profit of Rs. 9.50 crores for the period ended June 30, 2023 as against net profit of Rs. 16.95 crores for the period ended March 31, 2023. The company posted net profit of Rs.9.79 crores for the period ended June 30, 2022.

Commenting on the results, Chintan Shah, Managing Director said, I am pleased to inform you that TATVA CHINTAN has begun this financial year on a satisfactory note, in line with our expectations and we expect the improvement to gradually continue over the coming quarters. The year has started with better off-take and favorable product mix translating into better numbers for this quarter.

During this quarter, the company has reported revenue from operations of Rs. 1,144 million, a growth of 29% YoY from Rs. 884 million. EBITDA during the quarter was at Rs. 213 million, a growth of 40% YoY from Rs. 152 million. EBIDTA margins were at 18.7% v/s 17.2% in Q1FY23. The inventory (other than spares and packing materials) at consolidated levels have come down by nearly Rs. 125 million from Rs.  1,325 million as of March 2023 to Rs. 1,200 million as of June 2023. The logistic costs have steadily reduced to realistic levels which has come as a breather. Also, the price reduction in chemical space seems to have lost pace and the prices have begun to stabilize since the past few weeks.

I am quite happy and in fact proud, to inform you that we successfully commenced commercial production from the newly expanded facility at Dahej SEZ. With this the installed reactor capacity increased to 500KL from 294KL and assembly lines increased from 27 to 39.”

Update on the Product Categories:

* Phase Transfer Catalysts (PTCs) comprised 28% of the revenue during Q1FY24. These products are used as catalysts in manufacturing Pharmaceutical APIs, Flavors & Fragrances, Agrochemicals, etc.

* Structure Directing Agents (SDAs) comprised 43% of the revenue during Q1 FY24. SDAs are the key building blocks for manufacturing high precision zeolite which finds application in Automotive emission control, Petrochemicals, Continuous flow chemistry, etc.

* Electrolyte Salts (ES) comprised 1% of the revenue during Q1 FY24. ES are used in energy storage devices and super capacitor batteries which find application in automobile, electronics, etc.

* Pharma Agro Intermediates and Specialty Chemicals (PASC) product category comprised 27% of the revenue during Q1 FY24. PASC finds application in Pharmaceutical APIs, Agro Actives, paints and coatings, Li battery, detergents, personal care products, etc.