Vishnu Chemicals Ltd., a speciality chemicals company, announced strong financial performance for the fourth quarter (Q4FY24) and the full fiscal year 2024 (FY24).
Key Highlights:
7% Preference Shareholders Waived Dividends: The 7% preference shareholders, also promoters of the company, waived off 100% of their preference dividend for FY24.
Final Dividend: The board proposed a final dividend of ₹0.3 per equity share (15% of face value) for FY24.
Agile Sales Mix: Maintained a balanced mix of domestic and export sales in the ratio of 53:47.
EBITDA Margin Expansion: Significant improvement in EBITDA margin by 766 basis points in Q4FY24 to 21.2%, compared to 13.5% in Q3FY24.
Strong Performance in Barium Chemicals: Record volumes produced and sold, contributing to margin expansion and helping international clients recover from challenging macro environments.
Operational Expenses: Maintained at a flat level YoY due to prudent spending.
Balance Sheet and Liquidity:
Reduced consolidated long-term borrowings by ₹90.9 crore in FY24.
Debt to Equity ratio at 0.45.
Cash, cash equivalents, and bank balances at ₹60.4 crore.
Inventory Management: Higher inventories of raw materials and finished goods are being maintained to ensure continuous supply and quick dispatches, particularly due to increased transit times caused by the Red Sea crisis.
Credit Rating Upgrade: External credit rating upgraded from CARE BBB to CARE A.
Management Commentary:
Ch. Krishna Murthy, CMD of Vishnu Chemicals, expressed satisfaction with the company's strong performance in FY24, emphasizing the resilience in navigating macroeconomic headwinds. He highlighted the successful implementation of value addition and backward integration initiatives, leading to significant margin expansion. The company remains optimistic about future growth prospects, despite challenges like increased transit times.
Additional Resources:
ICICI Direct Analysis: https://www.icicidirect.com/research/equity/rapid-results/vishnu-chemicals-ltd
Vishnu Chemicals Investor Relations: https://vishnuchemicals.com/investors/
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