Revenue Growth Amidst Operational Challenges
Mumbai, January 30, 2025 – Heubach Colorants India Limited (BSE: 506390, NSE: HEUBACHIND) has reported its unaudited financial results for the quarter and nine months ended December 31, 2024.Key Financial Highlightsa (INR in Lakhs)
| Particulars | Q3 FY25 (31-12-2024) | Q2 FY25 (30-09-2024) | Q3 FY24 (31-12-2023) | 9M FY25 (31-12-2024) | 9M FY24 (31-12-2023) | FY24 (31-03-2024) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 21,298 | 21,842 | 17,609 | 60,478 | 58,579 | 79,070 |
| Other Income | 406 | 325 | 101 | 931 | 336 | 872 |
| Total Income | 21,704 | 22,167 | 17,710 | 61,409 | 58,915 | 79,942 |
| EBITDA (Estimated) | ~3,125 | ~3,118 | ~1,530 | ~8,208 | ~7,561 | ~9,600 |
| Profit Before Tax | 2,324 | 2,518 | 867 | 5,535 | 4,733 | 5,600 |
| Net Profit | 1,722 | 1,841 | 639 | 4,079 | 3,529 | 4,114 |
| Earnings Per Share (EPS) (INR) | 7.46 | 7.98 | 2.77 | 17.67 | 15.29 | 17.82 |
Performance Analysis
- Revenue Growth: The company posted a 20.9% year-on-year (YoY) increase in revenue for Q3 FY25, reaching ₹21,298 lakh, up from ₹17,609 lakh in Q3 FY24. However, revenue slightly declined quarter-on-quarter (QoQ) from ₹21,842 lakh in Q2 FY25.
- Profitability: Net profit for the quarter surged 169.5% YoY, reaching ₹1,722 lakh, compared to ₹639 lakh in Q3 FY24. However, it saw a 6.5% QoQ decline from Q2 FY25.
- Margins: The company maintained a stable EBITDA margin, despite fluctuating operational costs.
Segment Performance
- The company operates primarily in the Colorants segment, as per IND AS-108, meaning revenue generation remains concentrated in a single business vertical.
Corporate Announcements
- Leadership Changes:
- Ms. Amee Joshi, former Company Secretary & Nodal Officer, resigned on June 30, 2024.
- Mr. Bharath Sesha, Managing Director, stepped down on August 31, 2024.
- Ms. Ashwini Natekar was appointed as the Interim Company Secretary & Compliance Officereffective September 20, 2024.
- Mr. Sambit Roy was appointed as the Managing Director on November 14, 2024, effective November 25, 2024.
- Ownership Changes:
- Sudarshan Europe BV, a subsidiary of Sudarshan Chemical Industries Ltd, entered an agreement on October 11, 2024, to acquire all promoter-held shares.
- An Open Offer for 26% of the company’s equity (6,001,268 shares) was announced on October 16, 2024.
- Operational Disruptions:
- A fire incident occurred at the company’s warehouse in MIDC Dhatav (Raigad, Maharashtra) on January 1, 2025. No casualties were reported, and the company has filed an insurance claim. The event has been classified as non-adjusting under IND AS-10, meaning it won’t impact Q3 financial results.
- Financial Position:
- No outstanding defaults on loans or debt securities as of December 31, 2024.
Management Commentary
Sambit Roy, Managing Director, stated: "Despite ongoing industry challenges and corporate restructuring, Heubach Colorants India continues to demonstrate resilience and adaptability. The increase in revenue and profit underscores our strategic focus on efficiency and growth. The company remains committed to sustaining operational performance and exploring opportunities in the evolving colorants market."Outlook & Strategic Focus
- Post-Acquisition Integration: The upcoming transition to Sudarshan Chemical Industries Ltd could lead to synergies in operations and market positioning.
- Operational Resilience: The company’s going-concern assessment concluded no material uncertainties for the foreseeable future, despite insolvency proceedings for its German parent entity.
- Regulatory & Financial Compliance: The company remains debt-free, ensuring a stable financial outlook.
Conclusion
Heubach Colorants India Limited has showcased robust revenue growth and significant profitability improvement YoY, despite challenges such as leadership transitions, ownership changes, and a warehouse fire incident. The anticipated acquisition by Sudarshan Chemical Industries Ltd is expected to shape the company’s future trajectory.
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