Rossari Biotech (ROSSARI) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue, EBITDA, and PAT in Q2 FY25, reflecting steady performance and business resilience amid dynamic market conditions.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and reviewed by the Board and Audit Committee.

• HPPC division led growth, while Textile Specialty Chemicals (TSC) faced headwinds with recovery expected next year; Animal Health and Nutrition (AHN) remained stable.

• Appointment of Mr. Gurudas Aras as Non-Executive Independent Director and re-appointment of Mr. Aseem Dhru as Independent Director for three years, subject to member approval.

• Acquisition agreement signed for 100% equity in Unistar Thai Co. Limited, a newly incorporated specialty chemicals company in Thailand, to expand manufacturing footprint in Asia.

Financial highlights

• Q2 FY25 consolidated revenue from operations: ₹4,983.51 million, up from ₹4,896.50 million in Q1 FY25 and ₹4,834.68 million in Q2 FY24.

• Q2 FY25 consolidated net profit: ₹353.33 million, compared to ₹348.99 million in Q1 FY25 and ₹329.48 million in Q2 FY24.

• Q2 FY25 EBITDA: ₹65.9 crore, up 3.6% year-over-year; EBITDA margin stable at 13.2%.

• Diluted EPS for Q2 FY25: ₹6.4, up from ₹6.0 in Q2 FY24.

• Past three-year revenue CAGR: 11%; EBITDA and PAT CAGR: 16%.

Outlook and guidance

• Exports expected to continue outpacing domestic growth, strengthening international market position.

• Recovery in the textile segment anticipated in the next calendar year.

• Acquisition of Unistar Thai Co. Limited expected to close by the quarter ending December 2024, expanding presence in Southeast Asia.

• Ongoing investments and strategic initiatives expected to improve return metrics as they mature.