BSE listed CHD Chemicals Ltd., a chemicals and dyes manufacturing, trading and distribution Company, has announced its unaudited Q3 results. The Net Profit rose 262% YoY to Rs. 31.70 lakhs, EPS rose from Rs. 0.08 (FY20Q3) to Rs. 0.31 (FY21Q3) YoY. In QoQ comparison, Profit rose 280% and EPS rose from Rs. 0.08 (FY21Q2) to Rs. 0.31 (FY21Q3). The turnover for the quarter ended 31 December, 2020 stood at Rs. 2023.57 lakhs.
The Company is engaged in industrial chemicals and dyes for 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 had earlier announced that it had received a Rs. 56 Cr. 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 presently has its state-of-art R&D centers with ultra-modern equipment with focus on R&D initiatives for Pharmaceutical APIs, Chemicals, etc. This will double companies R&D capabilities and focus on 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, company’s turnover and profitability is expected to rise substantially.
The Indian dyestuff industry plays a vital role in the economic development of the country. It is one of the core chemical industries in India. It is also the second highest export segment in the chemical industry. Maharashtra and Gujarat account for 90% of dyestuff production in India due to the availability of raw materials and dominance of textile industry in these regions. The major users of dyes in India are textiles, paper, plastics, printing ink and foodstuff industries. The textiles sector consumes around 80% of the total production due to high demand for polyester and cotton, globally.
The compounded annual growth rate (CAGR) in production volumes of the Indian industry was quite strong (at 7.6%) and almost twice the rate of global growth (at 3.8%), but was behind that of China (sole key country recording a double-digit growth of 11.8%) and Middle East (~8.5%) 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 Middle East were the key regions that helped in doubling the global capacity during this period.
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