Shares of Bharat Rasayan surged 16.8 percent to reach a new all-time high of Rs 10,736 per share on the BSE during Friday’s intraday trading. This spike followed the company’s impressive financial results for the January-March quarter of fiscal year 2023-24 (Q4FY24).

In the quarter ending March 2024, Bharat Rasayan’s net profit soared by 121.85 percent to Rs 67.11 crore, compared to Rs 30.25 crore in the same period the previous year. Sales for this quarter rose 1.23 percent to Rs 309.63 crore, up from Rs 305.88 crore in the previous year’s corresponding quarter.

However, for the full fiscal year ending March 2024, the company’s net profit decreased by 23.35 percent to Rs 95.51 crore, down from Rs 124.61 crore in the prior fiscal year. Additionally, annual sales declined by 15.37 percent to Rs 1044.63 crore, compared to Rs 1234.34 crore in the previous year.

Mixed results, profit up short-term, down long-term

Bharat Rasayan’s revenue from operations increased slightly by 1.2 percent year-on-year to Rs 309.6 crore in the recent quarter, compared to Rs 305.8 crore in the same quarter last year.

The company’s total expenses for this quarter fell by 2.7 percent year-on-year to Rs 247 crore, down from Rs 254 crore in the same period the previous year.

The operating margin, or earnings before interest, tax, depreciation, and amortization (EBITDA) margin, improved significantly to 27.8 percent, up from 15.5 percent in the corresponding quarter last year. The net profit margin for the quarter also increased, reaching 21.9 percent compared to 10 percent in Q4FY23.

For the full fiscal year, the company’s profit decreased by 23.3 percent to Rs 95.5 crore in FY24, down from Rs 124.6 crore in FY23. Annual revenues declined by 15.3 percent to Rs 1,040 crore in FY24, compared to Rs 1,234 crore in FY23.

In FY24, Bharat Rasayan’s EBITDA margin was recorded at 12.2 percent, down from 14.8 percent in FY23. Similarly, the net profits decreased to 9.2 percent compared to 10.2 percent in the previous year.

Bharat Rasayan operates as a chemical manufacturing company, specializing in the production of fatty acid anhydrides, Grignard reagents, drug intermediates, esters, and solvents. It primarily focuses on manufacturing cosmetic ingredients, with a particular emphasis on personal care preservatives.