CHD Chemicals announces excellent Q1 results, profit up 80 per cent; bags Rs 56 crore export order
Chandigarh (Punjab) [India] September 9 (ANI/NewsVoir): BSE listed CHD Chemicals Ltd, a chemicals and dyes manufacturing, trading, and distribution company has announced excellent unaudited financial results for the quarter ended June 30, 2020, wherein the company's turnover stood at Rs 4.74 crore and the profit increased from Rs 12.84 lakh (Q1 19-20) to Rs 22.96 lakh (Q1 20-21), which is an 80 per cent 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 crore 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 the 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 a focus on R&D initiatives for Pharmaceutical APIs, Chemicals, etc.
This will double companies' R&D capabilities and focus on the 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, the 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 per cent) and almost twice the rate of global growth (at 3.8 per cent), but was behind that of China (sole key country recording a double-digit growth of 11.8 per cent) and the Middle East (approximately 8.5 per cent) 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 the Middle East were the key regions that helped in doubling the global capacity during this period.
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