Stock Report

Asahi SongwonColors Limited Reports Q4FY24 Results

Posted On : 2024-05-31 22:31:53( TIMEZONE : IST )

Asahi Songwon Colors Limited, India's leading manufacturer of pigments for ink, plastics, paint, textile and the paper industry has announced its financial results for the fourth quarter ended March 31%, 2024.

Standalone Financial Highlights for Quarter Ended March 31st, 2024:

- Total Revenue was Rs. 83.85 Cr during the quarter under review, Q-o-Q growth of 25.21% and Y-o-Y increase of 1.43%

- EBITDA Rs. 8.08 Cr during the quarter, a Q-o-Q growth of 99.98% and Y-o-Y increase of 198.76%

- EBITDA Margin stood at 9.63% for Q4FY24 as compared to 6.03% in Q3FY24 and (9.89)% in Q4FY23

- Net Profit stood at Rs. 3.95 Cr, a Q-o-Q increase of 977.74% and Y-o-Y increase of 146.58%

Consolidated Financial Highlights for Quarter Ended March 31st, 2024:

- Total Revenue was Rs. 125.97 Cr, a Q-o-Q growth of 23.31% and Y-o-Y increase of 1.77%

- EBITDA Rs. 8.78 Cr during the quarter, a Q-o-Q growth of 76.79% and Y-o-Y increase of 203.48%

- EBITDA Margin stood at 6.97% for Q4FY24 as compared to 4.86% in Q3FY24 and (6.86)% in Q4FY23

- Net Profit stood at Rs. 0.91 Cr, a Q-o-Q increase of 142.58% and Y-o-Y increase of 107.78%

Standalone Financial Highlights for Year Ended March 31st, 2024:

- Total Revenue was Rs. 276.58 Cr during the year under review, Y-o-Y decrease of 17.97%

- EBITDA Rs. 16.85 Cr during the year, a Y-o-Y increase of 106.46%

- EBITDA Margin stood at 6.09% for FY24 as compared to 2.42% in FY23

- Net Profit stood at Rs. 26.33 Cr (including exceptional income), a Y-o-Y increase of 659.02%

Consolidated Financial Highlights for Year Ended March 31st, 2024:

- Total Revenue was Rs. 426.24 Cr during the year under review, Y-o-Y decrease of 15.52%

- EBITDA Rs. 18.26 Cr during the year, a Y-o-Y increase of 245.62%

- EBITDA Margin stood at 4.28% for FY24 as compared to 1.05% in FY23

- Net Profit stood at Rs. 15.64 Cr (including exceptional income), a Y-o-Y increase of 184.66%

Commenting on the Q4FY24 performance, Gokul Jaykrishna, Joint Managing Director and CEO, said, "Lam pleased to provide an update on the performance of our blue pigment business for the quarter gone by. In line with our earlier guidance, the blue pigment segment has reported a strong performance. The inventory destocking phase has come to an end, and the value chain now maintains low inventory levels. This has resulted in higher demand compared to previous quarters.

Additionally, the current market demand has allowed us to pass on the increased costs of raw materials to our customers, which has helped us regain our profitability margins. Although we are still below our long-term average margins in this business, the situation is improving with each passing quarter.

We are confident about an improved performance of the blue pigment business in the current financial year."

Arjun G. Jaykrishna, Executive Director, commented, "Lam pleased to provide an update on the Company's performance for the past quarter. Our phthalocyanine business is exhibiting promising signs of recovery, although challenges persist in terms of demand within our Azo business. While our performance has improved compared to previous quarters, it remains below our expectations.

The situation in the Azo business is gradually improving, with capacity utilisation now approaching 65%. However, subdued demand continues to impact the profitability of this segment, thereby affecting the overall business performance.

Due to the challenging market environment, we have temporarily halted the debottlenecking of our yellow pigment capacity. We will reassess this decision once there is a noticeable improvement in demand.

Onthe API front, we are pleased to announce the commencement of commercial production at our Chattral site for API intermediates, which are currently being fully consumed internally. Trial runs for the APIs have also commenced, and we anticipate beginning commercial production shortly.

Additionally, we have acquired the remaining 22% stake in Atlas Life Sciences for a consideration of 9.65 crores, fully funded through internal accruals. Consequently, Atlas Life Sciences is now a wholly-owned subsidiary of Asahi Songwon Colors. The backward integration through intermediates has enhanced our profitability in the API business. However, the losses from the Azo segment continue to mask the overall profitability on a consolidated basis.

Looking ahead, we are confident in the improvement of both the Azo and API businesses and are optimistic that these segments will start contributing positively to our profitability in the current financial year."

Shares of Asahi Songwon Colors Limited was last trading in BSE at Rs. 367.55 as compared to the previous close of Rs. 374.40. The total number of shares traded during the day was 924 in over 151 trades.

The stock hit an intraday high of Rs. 391.30 and intraday low of 364.90. The net turnover during the day was Rs. 344379.00.