Sadhana Nitro Chem Ltd announces Operational Highlights and Future Outlook

Sadhana Nitro Chem Limited ("SNCL") has announced the Operational Highlights and Future Outlook as under:

Company Sees 40% Year-On-Year Revenue Growth in Q1, Despite Seasonal Trends

Even though Q1 is typically viewed as a softer quarter due to seasonal influences, our company's decisive expansion in ODB2 and PAP resulted in a noteworthy 40% year-onyear revenue surge. This remarkable increase predominantly stems from heightened volumes at our PAP and ODB2 plants.

Understanding the Current Profitability Scenario:

- New Plant Commercialisation: Recently, we commissioned certain plants, which naturally brought about increased depreciation and interest costs. At present, the revenue generated from these plants doesn't fully offset these costs. However, as we ramp up volumes, we anticipate that these costs will be absorbed more effectively, paving the way for enhanced profitability, evident from our EBIDTA numbers which are at an encouraging 20%

- Sales Pricing Dynamics: This quarter saw a dip in our sales pricing, swayed by China's prompt price reductions in line with their falling raw material costs. Nevertheless, with raw material prices in China stabilizing and India catching up with these adjustments, we're witnessing these improvements benefit our profitability margins.

Operational Highlights and Future Outlook:

- Strategic Focus: Our dedicated team is actively working on refining processes and boosting throughput, particularly as we assimilate new capacities.

- ODB2 Expansion: We are excited to report that our ODB2 production capacity has expanded significantly from 550 tons to 2200 tons. With robust orders in the pipeline, we're expecting a consistent increase in capacity utilisation.

- Global Positioning: This boost in ODB2 capacity solidifies our standing among the top two ODB2 producers worldwide. As the China +1 policy gains traction globally, we're diligently building stronger relationships with our clientele. Our goal is to consistently broaden our market presence and secure a larger market share.

- Updates on PAP: The Company is encouraged by the advancements in our PAP operations and look forward to sharing more details shortly.

In summation, our Q1 achievements are a testament of our determination and adaptability. We remain unwavering in our mission to deliver unparalleled value to our stakeholders and champion operational efficiency.

Shares of SADHANA NITROCHEM LTD. was last trading in BSE at Rs. 89.59 as compared to the previous close of Rs. 90.37. The total number of shares traded during the day was 22101 in over 330 trades.

The stock hit an intraday high of Rs. 92.90 and intraday low of 88.50. The net turnover during the day was Rs. 1982100.00.

Source : Equity Bulls

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