Bodal Chemicals (Bodal), India's leading manufacturer and marketer of Dye and Dye intermediates, reported a fall of 27.65% in standalone net profit to Rs 175 million in the quarter ended September 2020 as against Rs 241.89 million during the previous quarter ended September 2019.
Meanwhile, the company’s net sales grew 9.83% to Rs 2,828.33 million in the quarter ended September 2020 as against Rs 2,575.21 million during the previous quarter ended September 2019.
EBITDA came at Rs 316.3 million in September 2020, up 13.33% from Rs. 279.1 million in September 2019.
Bodal Chemicals EPS has decreased to Rs 1.43 in September 2020 from Rs 1.98 in September 2019.
Bodal, on Tuesday, announced its diversification into benzene downstream products having capacity of 55,000MTPA and expansion of Sulphuric Acid & Derivatives having capacity of 3,40,000 MTPA at Saykha GIDC, Bharuch, Gujarat.
The above products will further enhance 'Specialty Chemicals Segment' for Bodal and will open new growth areas for the company as the company intend to further expand in Specialty Chemicals segment in the future.
Bodal, by setting up the integrated product chain at the plant will lead to cost efficiency, better productivity and high margins for the company.The company intend to start the project by end of January 2021, and it is expected to get completed by end of September 2022.
Total cost of the project including one-time infrastructure costs will be around Rs 3,450 million. Out of that, cost of Benzene downstream products will be around Rs 1,650 million and cost of Sulphuric Acid & Derivatives will be around Rs 1,250 million. At optimum utilization, the company expect these two projects to generate revenues of around Rs 4,000 million, it said.
Bodal has already purchased the land costing around Rs 850 million. Projects will be funded by term loan as well as internal accruals, the company said.
Shares of the company gained Rs 0.6, or 0.96%, to settle at Rs 62.90. The total volume of shares traded was 26,965 at the BSE (Tuesday).