Himadri Speciality Chemical reports significant year-on-year growth in FY25, declares dividend, and acquires Elixir Carbo to strengthen its coal tar distillate business.
Himadri Speciality Chemical Limited has announced its audited financial results for the quarter and year ended March 31, 2025, showcasing a solid financial trajectory. The company's improved performance is due to operational efficiencies, a well-balanced product mix, and prudent cost controls.
For Q4 FY25, revenue from operations stood at ₹1,129.01 crores, marginally lower than the previous quarter's ₹1,131.81 crores but in line with market expectations. Total income, including other income of ₹13.37 crores, was ₹1,142.38 crores.
Profit before tax came in at ₹226.88 crores, and net profit rose to ₹158.23 crores, marking an increase of nearly ₹44 crores compared to the same quarter last year.
For the full financial year, revenue reached ₹4,595.80 crores, a notable rise from ₹4,184.89 crores in FY24. Net profit jumped to ₹558.06 crores, reflecting a year-on-year growth of over 35%, while total comprehensive income was ₹573.37 crores. These numbers underscore the company's ability to grow sustainably in a challenging market environment.
Dividend recommendation and capital structure updates
The Board of Directors of the company has proposed a final dividend of ₹0.60 per equity share of face value ₹1 each, representing 60% of the nominal value. This proposed dividend amounts to a total payout of ₹29.63 crores for the financial year ended March 31, 2025. The declaration is subject to approval by the shareholders at the company's upcoming Annual General Meeting (AGM).
The company also reported a rise in other equity to ₹3,598.15 crores, up from ₹2,931.95 crores in the previous year. Equity share capital stood at ₹49.38 crores. Basic earnings per share improved to ₹11.31, compared to ₹9.17 in FY24, indicating a healthy return for shareholders.
Acquisition of Elixir Carbo to enhance vertical integration
In a strategic move to boost its product pipeline, the company approved the acquisition of Elixir Carbo Private Limited for ₹7.50 crores in an all-cash transaction. Elixir Carbo, engaged in the manufacture and trade of naphthalene and its derivatives, posted a turnover of ₹11.4 crores for FY24.
This acquisition is aligned with Himadri's core strategy of expanding within the coal tar distillate segment. It will not only strengthen its vertical integration capabilities but also broaden the value-added product portfolio.
New appointments to strengthen governance
The Board approved several key appointments to reinforce governance and oversight. Mr Amitabh Srivastava was appointed as an Independent Director for a five-year term, pending shareholder approval.
Additionally, Ernst & Young LLP (EY) was re-appointed as the Internal Auditor for FY26, and M/s LABH & LABH Associates was appointed as the Secretarial Auditor for five years. These appointments reflect the company's ongoing focus on corporate governance and regulatory compliance.
Balance sheet and cash flow insights
Total assets increased to ₹4,522.16 crores from ₹4,358.00 crores, while liabilities declined to ₹874.63 crores from ₹1,376.79 crores, indicating improved financial management.
The company generated ₹455.03 crores in net cash from operating activities, driven by strong profitability and stable working capital. However, net cash used in financing activities amounted to ₹269.85 crores due to loan repayments, interest outflows, and dividend distributions.
What does this mean for investors?
As of 11:21 AM on April 22, 2025, the shares of Himadri Speciality Chemical are up by 1.25%, trading at ₹485.00 per share on the Bombay Stock Exchange (BSE).
The strong financial results, forward-looking acquisition, and shareholder-focused dividend announcement together indicate continued momentum for the company. Investors may see this as a signal of long-term growth potential as the company strengthens its core verticals, optimises cost structures, and maintains a disciplined approach to capital allocation.
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