CHD Chemicals Announces Excellent Q1 Results, Profit up 80%; Bags Rs. 56 Cr. Export Order
Chandigarh, India
BSE listed CHD Chemicals Ltd., a chemicals and dyes manufacturing, trading, and distribution Company has announced excellent unaudited financial results for the quarter ended 30 June 2020, wherein the Company’s turnover stood at Rs. 4.74 Cr. and the profit increased from Rs. 12.84 Lakh (Q1 19-20) to Rs. 22.96 Lakh (Q1 20-21), which is an 80% increase. The EPS almost doubled from Rs. 0.12 (Q1 19-20) to Rs. 0.23 (Q1 20-21).
The company had recently announced that it had received a Rs. 56 Cr. export order. The company is expanding its business throughout the region of South East Asia and for the same purpose the company has formed associations with the leading group of the same region. This order can be a game changer for the company. This huge order will help the Company in establishing its foot base in the Global Market and will help in increasing turnover as well as profitability.
The Company is engaged in industrial chemicals and dyes for textiles industry, leather and paper industries and also construction chemicals. The Company offers a range of products, which include Auxiliaries: dyeing; Easy Care Finishing; Finishing; Flame Retardant; Auxiliaries: optical Brightener; Pigment printing; Water Repellent; Acid Dye; Direct Dye; Ink for Digital printing; Vat Dye; Antifoaming Detergent and Basic chemicals.
The company presently has its state of art R&D centers with ultra-modern equipment with focus on R&D initiatives for Pharmaceutical APIs, Chemicals, etc. This will double companies R&D capabilities and focus on development of newer and niche value-added products and process chemistries, and improving product quality and process yields of existing products, forward integration for downstream products, among others. According to market analysts, due to the expansion, company’s turnover and profitability is expected to rise substantially.
The compounded annual growth rate (CAGR) in production volumes of the Indian industry was quite strong (at 7.6%) and almost twice the rate of global growth (at 3.8%), but was behind that of China (sole key country recording a double-digit growth of 11.8%) and Middle East (~8.5%) over 2000-2017. In comparison, the same for developed countries in Europe and North America remained flat at an aggregate level.
In the process, Indian capacities almost quadrupled over this period to 39 MT from 11 MT and is further expected to grow at a very fast pace according to a recent survey, whereby CHD chemicals would be benefitted substantially. India, China and Middle East were the key regions that helped in doubling the global capacity during this period.
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