Fineotex Chemical registers revenue growth of 80.06% Y-o-Y in Q3 FY22

The company’s accelerated growth story is reflective of the additional impetus placed on new international business collaborations. The new facility in Ambernath has been powered to cater to the growing demand from the textile space. High momentum in the specialty chemical space saw larger orders and the double-digit volume growth will continue.

Mr. Sanjay Tibrewala, Executive Director and CFO

Fineotex Chemical founded in 1979 is one of India’s largest and leading specialty chemical manufacturers. The company manufactures specialty chemicals for a host of industry segments including textiles, oil and gas, and the home and hygiene space. Its wide array of products covers the end-to-end value chain process of the textile industry including pre-treatment, dyeing, printing, etc. 

In November, Fineotex Chemical launched its new facility in Ambernath, on the outskirts of Mumbai. The new manufacturing hub is one of the several new investments FCL has made in recent months. The new plant was a logical and necessary step in strengthening the company’s competitive position at local and global levels.

All the recent developments by Fineotex signal the deep commitment of the company towards ensuring that its customers have access to top-end and sustainable chemistries.

Financial Highlights:

HIGHLIGHT OF CONSOLIDATED RESULTS:

Consolidated Q3 FY22 (Y-o-Y):

  • Revenue from Operation jumped by 80.06% i.e. to Rs 1050.7 mn from Rs. 583.5 mn on Y-o-Y basis
  • Operational EBIDTA increased by 84.14% i.e. to Rs 250.8 mn from Rs. 136.2 Mn on Y-o-Y basis
  • PAT increased by 42.43% i.e. to Rs 190.8 mn from Rs. 134.0 mn on Y-o-Y basis

HIGHLIGHT OF STANDALONE RESULTS:

Standalone Q3 FY22 (Y-o-Y):

  • Revenue from Operation increased by 90.35% i.e. to Rs 783.7 mn from Rs. 411.7 mn on Y-o-Y basis
  • Operational EBIDTA has increased by 72.05% i.e. to Rs 213.9 mn from Rs. 124.3 mn on Y-o-Y basis
  • PAT has increased by 27.75% i.e. to Rs 157.4 mn from Rs. 123.2 mn on Y-o-Y basis

GROWTH MARKERS:

Fineotex Chemical commenced its operations in Ambernath, on the outskirts of Mumbai in November 2021.  The facility adheres to the highest standards of sustainability, keeping in line with our overarching vision of greener products. 

With the tie-up with Eurodye-CTC, Fineotex added to its portfolio specialised pre-treatment and dyeing products for the cotton-synthetic and woolen fibre, fabric and yarn. This coupled with the existing Indian operations of Eurodye-CTC has enhanced our offerings and increased our customer base. 

Our joint venture with HealthGuard®, Australia as an exclusive channel partner for their entire range of products, will provide the Indian market with solutions that are durable and sustainable. The products are antimicrobial and anti-viral and will cater to an increasing demand for hygienic and safe textile solutions.

Commenting on the company’s results, Mr. Sanjay Tibrewala, Executive Director and CFO, said: “Our third quarter performance is a strong reflection of our ability to innovate and execute during dynamic and tough times. We have increased our wallet share and the higher demand has resulted in greater volume growth for most of our products, especially from the textile industry. Our order books have never been better before and business momentum has picked tremendous pace. I am delighted to announce that we have ended the Q3 FY22 on a positive note and registered a topline growth of 80.06% Y-o-Y and the PAT of the company stands at Rs 190.8 mn.”

Highlighting the company’s strategic initiatives, Ms. Aarti Jhunjhunwala, Executive Director, said: “Our numbers are buoyed by a strong demand from the textile market and specially the home furnishing segment. Fineotex Chemical Ltd. has earned the prestigious ECO PASSPORT by OEKO-TEX® Certification, the highest rating in the globally renowned audit that measures standards of sustainability. The green rating has been awarded by Hohenstein, an independent and neutral renowned testing system that is globally recognized. Out joint venture with HealthGuard, Australia, under which Fineotex will be the exclusive global marketing and sales channel partner with joint operations from Malaysia, will come into effect soon. HealthGuard® will concentrate on developing cutting-edge solutions, that will be marketed and distributed across the world by Fineotex-Biotex. Our strategic collaboration with Eurodye-CTC, Belgium, to commercialize specialty chemicals for the Indian market is another feather in our cap.”

Commenting on the company’s recent collaboration, Mr. Arindam Choudhuri, CEO, said: “Fineotex continues to expand its product range and provide unique offerings to all its customers. FCL will remain at the forefront of the specialty chemical space by providing outstanding customer service for both current and prospective partners.”