Enhancing Customer Service in the US
Vinati Saraf Mutreja, the Managing Director of Vinati Organics, announced the establishment of a new warehousing facility in the US aimed at improving service for American customers. This move comes as a response to customer expectations and the need for product restructuring and reprocessing.
Production Capacity Expansion
The company is also set to expand the volume capacity of its ATBS (acrylamide tertiary butyl sulfonic acid) plant by 50%, with commissioning expected by the April-June quarter of 2025 (Q1FY26). Currently, ATBS contributes 40% of sales, and this contribution is expected to remain stable.
Acrylamide tertiary butyl sulfonic acid is a vital chemical utilized across various industries, including textiles, adhesives, and personal care products.
Financial Performance
In terms of financials, Vinati Organics reported a 17% year-on-year revenue increase for the October-December quarter of 2024 (Q3FY25), reaching ₹522 crore. The EBITDA grew by 25% to ₹142 crore, with an improved EBITDA margin of 27.2% compared to 25.4% previously. Profit after tax (PAT) also rose to ₹93.7 crore from ₹76.9 crore.
Despite strong performance, brokerage firm MOSL noted that PAT was slightly below expectations due to lower-than-anticipated other income.
For a detailed interview, check the accompanying video.
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